Natural justice and effective hearing require remand where penalty is imposed without giving the appellant a fair opportunity to be heard.

Penalty was held unsustainable where the adjudication order was issued on the same day as the scheduled personal hearing and the appellant had sought an adjournment on sickness grounds. On the recorded facts, no effective opportunity of hearing was afforded before penalty was imposed, so the adjudication was found contrary to the principles of natural justice. The matter was therefore set aside and remanded to the jurisdictional Commissioner for fresh adjudication after giving the appellant an opportunity to present its case. The stay application was allowed and the appeal was disposed of by remand.

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Issues: Whether the penalty order was vitiated for want of effective hearing and whether the matter should be remanded for fresh adjudication.

Analysis: The order was passed on the same date on which the personal hearing was fixed, and the appellant had sought adjournment on the ground of sickness. On the facts recorded, no effective opportunity was afforded before imposition of penalty, and the adjudication was found to be contrary to the principles of natural justice. The appropriate course was to set aside the matter for fresh consideration by the jurisdictional Commissioner after giving the appellant an opportunity to present the case.

Conclusion: The stay application was allowed and the appeal was allowed by way of remand.

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