Natural justice bars ex parte dismissal for non-compliance with pre-deposit directions; appeals were remanded for fresh hearing.

An ex parte dismissal of appeals for non-compliance with a pre-deposit direction under Section 35F was held unsustainable because it was made without affording the appellants a hearing, contrary to natural justice. The appellate order and interim direction were set aside, the pre-deposit requirement was waived, and the matters were remanded to the Commissioner (Appeals) for de novo consideration after hearing the appellants. The Commissioner (Appeals) was also directed to examine the appellants' grievance that the original adjudication itself suffered from violation of natural justice.

---

---

Issues: Whether dismissal of the appeals for non-compliance with the pre-deposit direction under Section 35F, without granting an opportunity of hearing, was legally sustainable; and whether the matter required remand for fresh consideration after hearing the appellants.

Analysis: The dismissal order and the interim pre-deposit direction had been passed ex parte. The Tribunal noted that such disposal without hearing offended the principles of natural justice. In view of the earlier judicial approach treating such orders as unsustainable, and consistent with remand in similar matters, the appellants were found entitled to waiver of pre-deposit and to a fresh hearing before the appellate authority. The grievance that the original adjudication itself suffered from violation of natural justice was also directed to be examined by the Commissioner (Appeals).

Conclusion: The ex parte dismissal under Section 35F was set aside, pre-deposit was waived, and the appeals were remanded to the Commissioner (Appeals) for de novo consideration after granting a hearing to the appellants.

Final Conclusion: The dispute was not finally decided on merits by the Tribunal and was sent back for fresh adjudication with an opportunity of hearing.

Ratio Decidendi: An appellate order dismissing an appeal for non-compliance with a pre-deposit direction cannot be sustained when passed without giving the party an opportunity of hearing, and the matter must be reconsidered de novo in accordance with natural justice.

---