Meaningful hearing under section 254(1) allows tribunals to secure service through tax authorities when notice by post fails.

Section 254(1) requires the Tribunal to give both parties a meaningful opportunity of hearing, and service of notice is an essential part of that right. Where postal service at the address supplied by the Revenue fails, the Tribunal may use its incidental and ancillary powers to secure service through the income-tax authorities so that appellate jurisdiction is effectively exercised. On the facts, because the Revenue did not take effective steps to secure service despite sufficient opportunity, the appeal could not proceed on merits and dismissal was justified.

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Issues: Whether the appeal of the Revenue could be dismissed when notice of hearing could not be served on the assessee and the Tribunal could direct service through the Income-tax authorities in exercise of its powers under section 254(1).

Analysis: Section 254(1) requires the Tribunal to afford both parties an opportunity of being heard, and such opportunity is a valuable procedural right, not an empty formality. Where service by post at the address supplied by the Revenue fails, the Tribunal may invoke its incidental and ancillary powers, as part of its effective adjudicatory jurisdiction, to secure service through the departmental machinery. The Tribunal held that this course is consistent with its statutory function and with the established practice of ensuring expeditious disposal of tax disputes. Since the Revenue did not take effective steps to secure service despite sufficient opportunity, the appeal could not be heard on merits.

Conclusion: The Tribunal could require effective service of notice and, in the facts, dismissal of the Revenue's appeal for failure to secure service was justified.

Ratio Decidendi: A tribunal vested with appellate jurisdiction may exercise incidental and ancillary powers necessary to make its express statutory power effective, including securing service of notice so that the statutory right of hearing under section 254(1) is meaningful.

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