Natural justice and effective hearing led to remand for fresh appellate adjudication on merits

Denial of an effective opportunity of hearing before the first appellate authority amounted to violation of natural justice, and the Tribunal accepted that the impugned orders could not stand on that record. As both sides acknowledged the lack of proper hearing, the Tribunal interfered with the appellate orders and directed fresh adjudication on merits by the first appellate authority. The matters were therefore remanded for de novo consideration, with the assessee granted an opportunity to place its case fully.

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Issues: Whether the appellate orders were liable to be set aside and the matters remanded for de novo consideration on the ground of violation of principles of natural justice and denial of opportunity of hearing.

Analysis: The record showed that the assessee was not afforded an effective opportunity before the first appellate authority. The Tribunal noted that both sides were ad idem that the impugned orders suffered from denial of natural justice, and the assessee sought one further opportunity to place its case on merits. In these circumstances, the Tribunal found it appropriate to interfere with the appellate orders and direct fresh adjudication on merits by the first appellate authority.

Conclusion: The impugned orders were set aside and the matters were remanded to the first appellate authority for de novo adjudication. The relief was thus granted in favour of the assessee.

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