Natural justice requires notice and hearing before dismissal of an appeal for non-deposit; order set aside and remanded.

An appellate order dismissing an appeal for non-deposit was held unsustainable where the appellant had not been given notice of hearing and the order contained no reasons or merits discussion. A quasi-judicial authority must afford an affected party an opportunity of hearing before passing a prejudicial order, and the fact that pre-decisional hearing may not be necessary for an application under Section 35F did not justify disposal of the appeal itself without hearing. The order was set aside and the matter remanded for fresh adjudication in accordance with natural justice.

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Issues: Whether the appellate order dismissing the appeal for non-deposit without notice of hearing or reasons could be sustained, and whether the matter required reconsideration after following natural justice.

Analysis: The order under challenge was passed without discussing the merits and without showing that the appellant had been given notice of hearing. A quasi-judicial authority cannot pass an order prejudicial to a party without affording an opportunity of hearing. The position that pre-decisional hearing may not be necessary for an application under Section 35F did not justify disposal of the appeal itself without hearing. The absence of notice and reasons rendered the dismissal unsustainable.

Conclusion: The impugned order was set aside and the matter was remanded for fresh decision after following the principles of natural justice.

Final Conclusion: The assessee succeeded on the procedural challenge, and the appeal was restored for de novo adjudication by the appellate authority.

Ratio Decidendi: An appeal or other quasi-judicial proceeding cannot be dismissed without giving the affected party notice and an opportunity of hearing, and an order passed in breach of natural justice is liable to be set aside and remanded for fresh adjudication.

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