Appellate tribunal power to recall consequential orders and rehear an appeal when the underlying foundation falls away.

An appellate tribunal's jurisdiction includes implied authority to pass consequential orders and, where the foundation for such an order disappears, to vacate it and rehear the appeal. Here, the earlier assessment appeal order was only consequential and depended on the assessee's successful challenge to the refusal under section 27. Once that foundation could not stand, the consequential order could not survive. The Tribunal was therefore justified in recalling its earlier order and deciding the assessment appeal afresh, so that its appellate power remained effective and the appeal was not rendered nugatory.

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Issues: Whether the Appellate Tribunal had power to vacate its earlier consequential order in the assessment appeal and decide that appeal afresh after the connected order under section 27 was set aside.

Analysis: The Tribunal's earlier order allowing the assessment appeal was not a substantive decision on merits, but a consequential order dependent on the acceptance of the assessee's challenge to the refusal under section 27. Once the order rejecting the section 27 application was required to stand, the consequential order in the assessment appeal could not survive. The appellate jurisdiction conferred on the Tribunal carries by necessary implication all powers reasonably required to make that jurisdiction effective, including passing consequential orders so that the appeal is not rendered nugatory.

Conclusion: The Tribunal was right in vacating the earlier order and in rehearing the assessment appeal afresh; the answer is in favour of the Revenue.

Final Conclusion: A consequential order passed in an appeal may be recalled and the appeal reheard where the foundation for that order disappears, because the Tribunal's appellate power includes the implied authority to make its jurisdiction effective.

Ratio Decidendi: An appellate tribunal has implied power to pass and, where necessary, to vacate consequential orders so as to make its appellate jurisdiction effective and prevent its decision from being rendered nugatory.

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