Mandatory pre-deposit and natural justice: appeal remanded for merits hearing after verified payment

Mandatory pre-deposit could not be waived after the statutory amendment, so dismissal of the appeal for non-payment was not erroneous on that ground. As the pre-deposit was later paid and verified, and the Commissioner (Appeals) had not examined the merits, the appellant was entitled to a hearing on merits consistent with natural justice. The impugned order was set aside and the matter remanded to the Commissioner (Appeals) for fresh decision after affording due opportunity of hearing.

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Issues: Whether the dismissal of the appeal for non-payment of pre-deposit was sustainable and whether the appeal should be remanded for decision on merits after proof of payment of the pre-deposit.

Analysis: The mandatory pre-deposit requirement could not be waived after the statutory amendment, and the dismissal order was not erroneous on that score. However, the amount of pre-deposit had subsequently been paid and verified. Since the Commissioner (Appeals) had not examined the merits of the appeal, the appellant was entitled to a hearing on merits in accordance with the principles of natural justice.

Conclusion: The impugned order was set aside and the matter was remanded to the Commissioner (Appeals) for fresh decision on merits after affording due opportunity of hearing.

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