Natural justice and appellate remand directions require fresh adjudication when prior instructions are not followed.

An adjudication order passed without implementing an earlier appellate remand was unsustainable where the appellate direction required simultaneous consideration of the pending show cause notices and a fresh hearing consistent with natural justice. The HC held that the adjudicating authority was bound to follow the remand mandate, particularly because the pending notice and cancellation proceedings had a direct bearing on the decision. As the impugned order was made before the appellate order was available to the officer, a fresh adjudication was necessary. The order was therefore set aside and the matter remanded for decision after hearing the parties.

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Issues: Whether the impugned adjudication order was liable to be set aside and the matter remanded in view of the earlier appellate remand directing simultaneous consideration of the pending show cause notices and grant of a fair hearing.

Analysis: The prior appellate order had remanded the matter for simultaneous decision of the show cause notices and expressly required a fresh adjudication after giving the assessee a fair opportunity and following natural justice. The impugned order had been passed before the appellate order was available to the concerned officer. In these circumstances, the original authority was bound to follow the appellate directions, since the pending notice and the cancellation proceedings had a direct bearing on the adjudication. A fresh hearing and decision in accordance with law was therefore necessary.

Conclusion: The impugned order was set aside and the proceedings were remanded to the adjudicating authority for fresh decision after hearing the parties.

Ratio Decidendi: When an appellate authority has remanded proceedings with a direction for simultaneous consideration and a fresh hearing, the adjudicating authority must adhere to that mandate, and an order passed without giving effect to it is liable to be set aside and remanded.

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