Pre-deposit orders require a hearing and consideration of financial hardship before dismissal of appeals.

Dismissal of appeals for non-compliance with a pre-deposit direction was held unsustainable where the assessee was not heard and the plea of financial hardship was not examined. The statutory scheme governing pre-deposit requires an opportunity of hearing before the amount to be deposited is fixed, and that exercise must also take into account the assessee's prima facie case and financial hardship in line with natural justice. The impugned orders were set aside and the matters remanded for a fresh decision on the stay applications after hearing the assessee.

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Issues: Whether dismissal of the appeals for non-compliance with the pre-deposit direction, without giving the assessee an opportunity of hearing and without considering financial hardship, was sustainable.

Analysis: The dismissal orders under the pre-deposit provision were passed without hearing the assessee and without examining the plea of financial hardship. The requirement of hearing the assessee before fixing the amount to be pre-deposited is part of the statutory scheme and is supported by the principles of natural justice.

Conclusion: The impugned orders were set aside and the matters were remanded to the Commissioner (Appeals) to afford a hearing, consider prima facie case and financial hardship, and then pass appropriate orders on the stay applications.

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