Failure to decide all raised grounds breaches fair hearing and justifies quashing a rectification rejection

The Tribunal's refusal to rectify could not stand because material grounds raised in the second appeal, including non-service of statutory notice and levy of penalty, were not adjudicated. Omitting consideration of relevant grounds breaches fair hearing requirements and leaves the order unsustainable. The Gujarat High Court therefore quashed the rectification order and restored the second appeal for fresh adjudication of all issues raised.

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Issues: Whether the Tribunal's order rejecting rectification was sustainable when the grounds raised in the second appeal were not dealt with, and whether the matter should be remanded for fresh consideration.

Analysis: The record showed that the petitioner had specifically raised the grounds relating to non-service of statutory notice and levy of penalty, but those grounds were not considered while deciding the second appeal. A failure to adjudicate material grounds amounts to a breach of fair hearing, since all relevant issues must be considered before an order is passed. In these circumstances, the rectification order rejecting the request to address the omitted grounds could not stand.

Conclusion: The Tribunal's order was quashed and the second appeal was restored for fresh adjudication of all raised grounds.

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