Natural justice requires hearing before rejecting pre-deposit waiver and dismissing a customs appeal for non-compliance.

An appellate authority dealing with a request for dispensation from pre-deposit under Section 129E of the Customs Act must first grant a requested personal hearing and decide the waiver application on merits. If waiver is refused, the authority should formally reject that request and allow reasonable time to make the deposit before proceeding with the appeal. Dismissing the appeal at the threshold for non-compliance, without following that sequence, was treated as contrary to natural justice and the rule of law. The order-in-appeal was set aside and the matter was remanded for fresh disposal of all pending applications, including the pre-deposit waiver request.

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Issues: Whether the appellate authority could dismiss the appeal for non-compliance with the pre-deposit requirement without first granting a requested personal hearing and deciding the application for waiver of pre-deposit under Section 129E of the Customs Act.

Analysis: The order records that a party seeking dispensation from pre-deposit had specifically asked for a short personal hearing. It was held that the appellate authority was obliged to afford such hearing and, if the waiver request was found unjustified, to formally reject that application and grant reasonable time to make the deposit before proceeding with the appeal. Dismissing the waiver request at the threshold and then disposing of the main appeal for non-compliance was held to be contrary to the rule of law and the principles of natural justice.

Conclusion: The order-in-appeal was set aside and the matter was remanded to the Collector (Appeals) for fresh disposal of all applications, including the request for dispensation from pre-deposit, in accordance with natural justice.

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