Pre-deposit dismissal set aside where no effective hearing was granted; appeal remanded for decision on merits.

Dismissal of an appeal for failure to comply with a pre-deposit direction cannot stand where the appellants had sought modification and no effective opportunity of hearing was given before the appellate order was passed. The proper course was to hear the matter on merits in accordance with law. The dismissal order was therefore set aside and the appeal was remanded to the Commissioner (Appeals) for fresh adjudication on merits without insisting on pre-deposit.

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Issues: Whether the appeal could be dismissed for non-compliance with the pre-deposit direction without granting a hearing, and whether the matter should be remanded for disposal on merits without insisting on pre-deposit.

Analysis: The appeal was disposed of by the Commissioner (Appeals) for failure to comply with the earlier pre-deposit direction. The record showed that the appellants had sought modification and that dismissal followed without affording an effective opportunity of hearing. In such circumstances, the appellate order could not stand. The matter was required to be heard on merits in accordance with law.

Conclusion: The dismissal order was set aside and the appeal was remanded to the Commissioner (Appeals) for fresh hearing on merits without insisting on pre-deposit.

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