2026 (4) TMI 140 - HC - GST

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 ... Binding effect of appellate remand directions - Simultaneous Adjudication - Seeking Fair Opportunity of hearing - pending show cause notices and grant of a fair hearing. Binding effect of appellate remand directions - Fresh adjudication after opportunity of hearing - HELD THAT: - The Court held that the order of the Additional Commissioner (Appeals-II), remanding the matter with a direction that the show cause notice dated 8 February, 2023 and the cancellation proceedings be considered together, was required to be followed, since the issues could have a bearing on the decision to be taken by the original authority. As the impugned order had been passed without acting in conformity with that remand direction, the proper course was to restore the proceedings to the Joint Commissioner for adjudication in accordance with the appellate order and after giving an opportunity of hearing to the parties. [Paras 5, 6] The impugned order was set aside and the proceedings were remanded to the Joint Commissioner for fresh adjudication in accordance with law and the appellate remand directions, with all contentions kept open. Final Conclusion: The petition was disposed of by setting aside the impugned adjudication order and directing fresh consideration of the show cause notice by the Joint Commissioner in conformity with the prior appellate remand order and after granting hearing to the parties. 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.