Ex parte dismissal for non-prosecution cannot replace a merits-based appeal decision; remand ordered for fresh hearing.

An ex parte dismissal of an appeal for non-prosecution was unsustainable because the first appellate authority was required to decide the appeal on merits even if the appellant was absent. As the appeal had not been examined substantively, the dismissal could not stand. The matter was remanded for fresh disposal de novo on merits after granting the assessee a reasonable opportunity of hearing.

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Issues: Whether the ex parte dismissal of the appeal by the first appellate authority for non-prosecution was sustainable, and whether the matter required remand for fresh adjudication on merits after giving the assessee an opportunity of hearing.

Analysis: The appeal before the first appellate authority was dismissed in limine for non-prosecution. The settled position is that even where the appellant is absent, the appellate authority must decide the appeal on merits and cannot dispose of it mechanically. Since the appeal was not examined substantively, the order could not be sustained.

Conclusion: The matter was remanded to the first appellate authority for fresh disposal de novo on merits after affording a reasonable opportunity of hearing to the assessee.

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