Fair hearing before dismissal for pre-deposit default required when merits remain fit for substantive adjudication.

An appeal should not be dismissed for non-compliance with a pre-deposit direction without first giving the assessee a fair opportunity to be heard on the merits. The Tribunal noted that the appellate order had been made without such hearing and held that the Commissioner was not justified in dismissing the appeal in that manner. The impugned order was set aside and the matter was restored for fresh adjudication on merits after hearing the assessee.

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Issues: Whether the appeal was liable to be dismissed for non-compliance with the pre-deposit direction without affording the assessee an opportunity of hearing on merits.

Analysis: The appellate order was made without hearing the assessee on the merits of the dispute. The Tribunal found that the Commissioner was not justified in dismissing the appeal in that manner and that the matter required direct consideration on merits.

Conclusion: The dismissal was set aside and the proceedings were remanded for fresh hearing and on merits, in favour of the appellant.

Final Conclusion: The impugned order could not stand and the dispute was restored to the Commissioner for adjudication after hearing the assessee.

Ratio Decidendi: An appeal should not be dismissed for procedural non-compliance without affording the party a fair opportunity to be heard on merits where the matter is fit for substantive adjudication.

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