Natural Justice failure in service led to order being set aside and remanded for fresh adjudication, subject to a deposit and hearing.

Order dated 24.04.2024 was set aside for breach of natural justice because notice was not received after the appellant changed address and the respondent proceeded ex parte; the HC remanded the matter for fresh adjudication and directed the respondent to afford the appellant a hearing. The court confined itself to procedural fairness and did not adjudicate the merits of tax liability or correctness of bank credits. The Tribunal's requirement of a statutory pre-deposit was recorded as a condition for maintaining the appeal but was not finally decided by the court; remand is subject to the specified deposit and appearance requirements.

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Issues: Whether the order dated 24.04.2024 passed without affording the appellant an opportunity to be heard violated the principles of natural justice, and whether the matter should be remanded for fresh adjudication.

Analysis: The Court examined the service of notice and address particulars after remand and found that the appellant had shifted residence and did not receive the notice at the new address; the respondent proceeded ex parte and adjudicated the credits reflected in the bank account. The Court confined its review to procedural fairness and did not enter into merits of tax liability or correctness of credits considered. The Tribunal's direction requiring statutory pre-deposit under Section 35F of the Central Excise Act, 1944 was noted as a statutory condition for maintaining the appeal but not adjudicated on merits by this Court.

Conclusion: The order dated 24.04.2024 is set aside for violation of the principles of natural justice and the matter is remanded to the respondent for fresh adjudication after affording the appellant a hearing, subject to the appellant depositing Rs.75,00,000/- within four weeks and appearing before the respondent on 25.02.2026.

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