Natural justice in pre-deposit orders requires a hearing before dismissal for non-compliance, with remand for fresh consideration.

A stay and pre-deposit direction must be made after considering the relevant facts and circumstances and after granting a reasonable opportunity of personal hearing. Where the waiver decision is made without hearing the appellant and the appeal is later dismissed solely for non-compliance with that direction, the consequential dismissal cannot stand. The proper course is to set aside the foundation order and remand the matter for fresh consideration of the stay application, followed by disposal of the appeal on merits after a speaking order and personal hearing.

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Issues: Whether the order of the Commissioner (Appeals) directing pre-deposit and the consequential dismissal of the appeal were vitiated for non-observance of natural justice, and whether the matter was required to be remanded for fresh consideration.

Analysis: The stay order was passed without affording personal hearing and without showing due consideration of the relevant facts and circumstances of the case while exercising discretion on waiver of pre-deposit. The subsequent rejection of the appeal was based solely on non-compliance with that pre-deposit direction. Since the foundation order was made in breach of natural justice, the consequential final order could not stand. A speaking order on the stay application and a proper opportunity of hearing were necessary before the appeal could be disposed of on merits.

Conclusion: The stay order and the consequential dismissal order were set aside, and the matter was remanded to the Commissioner (Appeals) for fresh consideration of the stay application and thereafter disposal of the appeal after granting a reasonable opportunity of personal hearing.

Ratio Decidendi: An order on stay and pre-deposit must be passed after considering the relevant facts and circumstances and after giving a reasonable opportunity of hearing; failure to do so vitiates the consequential dismissal of the appeal.

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