Law:

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 Summary The court examined whether the Appellate Tribunal ignored findings of the Collector (Appeals) regarding allegedly bogus invoices. It held that the Tribunal was correct in rejecting those findings because they were based on material gathered behind the respondent’s back without giving an opportunity to respond. This violated principles of natural justice. Since no proper question of law arose and the issue was purely factual, the reference was dismissed. Tagline “Adverse findings without hearing the affected party violate natural justice and cannot be sustained.” ORDER; BABAR SATTAR, J.- The question of law framed for adjudication in this Reference is as follows: “Whether the Tribunal ignored the findings of Collector (Appeals) in para-6(B) of the order in Appeal.”   Learned counsel for the applicant Department has read out para-6(B) of the order of the Collector in Appeal No. 158/2004 dated 01.12.2004 which is reproduced below: “The second issue pertains to the claiming of input on different invoices issued in the jurisdiction of various collectorates. On verification all the collectorates have reported that all these invoices are bogus. When confronted the appellant had nothing to say. I thus confirm this liability.” The only findings given by the learned Collector while sitting in appellate jurisdiction in relation to various invoices, the input of which was being claimed by the respondent as being bogus. In the said para-6(B) there is nothing to establish how the learned Collector determined that the invoices were bogus and whether or not the respondent was ever involved in verification proceedings or even shown the material on the basis of which the learned Collector came to such conclusion. The learned Appellate Tribunal in Appeal No. 36/2005 by judgment dated 10.07.2007 considered the said question and its reasoning that why it rejected the factual findings of the learned Collector in relation to veracity of the receipts is as follows: “I am clear in mind that the forum…