Appellate appeals under sales tax law must be decided on merits; dismissal for default is inconsistent with the statute.

Section 20(6) of the Punjab General Sales Tax Act required the appellate authority to pass such order on appeal as it deemed just and proper, which meant deciding the appeal on merits. A dismissal for default of appearance was not a decision on appeal and could not satisfy that statutory mandate. The court also held that the rule enabling dismissal for default was repugnant to the Act and ultra vires to that extent, because the appeal process had to remain available for merits-based adjudication and reference on questions of law. The impugned dismissal and refusal to restore were quashed, and the matter was remitted for decision on merits.

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Issues: Whether an appellate authority under the Punjab General Sales Tax Act, 1948 had power to dismiss an appeal for default of appearance, and whether rule 59(2) of the Punjab General Sales Tax Rules, 1949 was inconsistent with section 20(6) of the Act.

Analysis: Section 20(6) empowered the appellate authority to pass such order on appeal as it deemed just and proper, which required adjudication on merits of the points raised in appeal. A dismissal for default was not a decision on appeal and could not satisfy the statutory mandate of a just and proper appellate order. The scheme of the Act, including the reference mechanism under section 22, also indicated that an appeal had to be decided on merits so that questions of law could properly arise for reference. The rule enabling dismissal for default was therefore repugnant to the parent Act.

Conclusion: The appellate authority had no power to dismiss the appeal for default, and rule 59(2) was ultra vires to the extent it authorised such dismissal.

Final Conclusion: The impugned orders dismissing the appeal and refusing restoration were quashed, and the matter was remitted to the Tribunal for decision on merits.

Ratio Decidendi: Where the statute requires the appellate authority to pass such order on appeal as it deems just and proper, the appeal must be decided on merits and a rule permitting dismissal for default is inconsistent with the Act.

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