Principles of natural justice were violated by denying...

Principles of natural justice were violated by denying opportunity for personal hearing without making serious attempts to reach out to appellant. Recovery proceedings cannot be initiated when stay application is pending for reasons beyond assessee's control. In revised appeals scheme with mandatory pre-deposit, stay on appealed order is deemed operative once appeal is accepted by Tribunal after paying requisite pre-deposit. Impugned order was cryptic without adjudicating rights and liabilities by applying mind to merits. First Appellate Authority could have decided matter ex-parte for non-prosecution, but not at first instance when intimation letter was returned with remarks 'left and moved'. Appellant's laxity in not updating contact address is not condoned, but substantive justice should not be denied on technical grounds without visible efforts to reach out. Impugned order and consequent Demand Notice set aside, matter remanded to First Appellate Authority for fresh decision after giving appellant opportunity of being heard.