Natural justice requires a fresh hearing where an ex parte appellate order is passed and the matter is restored for reconsideration.

An ex parte first appellate order was set aside and the matter restored for fresh adjudication because the assessee had not been given a meaningful opportunity of hearing. The Tribunal applied the principles of natural justice and directed the first appellate authority to reconsider the dispute after granting one more chance to the assessee to participate. The assessee was cautioned to cooperate in the remand proceedings, failing which the authority could decide the matter on the material already available. No final determination on the tax dispute on merits was made.

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Issues: Whether the ex parte appellate order should be set aside and the matter remanded to the first appellate authority for a fresh decision after granting one more opportunity of hearing to the assessee.

Analysis: The appeal before the Tribunal arose from an ex parte order of the first appellate authority. In view of the assessee's non-appearance before the lower authorities, the Tribunal nevertheless considered that a final adjudication at the appellate stage should be preceded by a meaningful opportunity of hearing. To meet the requirements of natural justice, and since the assessee sought a fresh hearing before the first appellate authority, the Tribunal found it appropriate to restore the matter. The Tribunal also cautioned the assessee to cooperate in the remand proceedings, failing which the authority would be free to decide the matter on the material already available.

Conclusion: The ex parte appellate order was set aside and the matter was remanded to the first appellate authority for fresh consideration after affording one more opportunity of being heard to the assessee.

Final Conclusion: The appeal succeeded only to the extent of remand and restoration for fresh adjudication, with no final determination of the tax dispute on merits.

Ratio Decidendi: Where the first appellate order is passed ex parte, the matter may be restored for a fresh hearing to ensure compliance with natural justice and a fair opportunity of participation.

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