The petitioner challenged adjudication and appellate orders passed pursuant to scrutiny proceedings for FY 2018-19. The factual background showed that the petitioner had submitted multiple replies and documents to the show cause notice issued in Form DRC-01. However, the authorities proceeded to pass adverse orders without granting an effective opportunity of hearing and without properly considering the material placed on record.
The Court held that failure to afford an effective opportunity of hearing and non-consideration of replies amounts to violation of principles of natural justice. The impugned orders were set aside and the matter was remanded to the appellate authority to pass fresh orders after granting due opportunity to the petitioner.