Appellate authority must decide sales tax appeal on merits and cannot dismiss it for default of appearance.

An appellate authority under section 31(3) of the Tamil Nadu General Sales Tax Act and rule 27(5) of the Rules has no jurisdiction to dismiss an appeal for default of appearance when the statute does not expressly confer that power. The appellate scheme requires disposal by confirming, reducing, enhancing, annulling, setting aside, or otherwise varying the assessment after giving a reasonable opportunity of hearing, so the appeal must be decided on merits. The Madras HC therefore held that the Appellate Assistant Commissioner was bound to hear and determine the appeals substantively even in the appellant's absence.

---

---

Issues: Whether the Appellate Assistant Commissioner had jurisdiction under section 31(3) of the Tamil Nadu General Sales Tax Act and rule 27(5) of the Tamil Nadu General Sales Tax Rules to dismiss an appeal for default of appearance instead of deciding it on merits.

Analysis: The statutory scheme of section 31(3) empowers the appellate authority to dispose of an appeal by confirming, reducing, enhancing, annulling, setting aside, or otherwise varying the assessment or order, after affording a reasonable opportunity of being heard. Rule 27(5) likewise requires the appellate authority to pass such orders as it thinks fit subject to section 31(3). The provisions contain no express power to reject an appeal for non-appearance. The reasoning is reinforced by the principle laid down in the Supreme Court decision dealing with the analogous provision in the Income-tax Act, 1922, that an appellate authority must decide the appeal on merits and cannot short-circuit the statutory duty by dismissing it for default.

Conclusion: The Appellate Assistant Commissioner had no jurisdiction to dismiss the appeals for default and was bound to decide them on merits even in the absence of the appellant.

Ratio Decidendi: Where the appellate statute requires the authority to dispose of the appeal after hearing the appellant and does not expressly authorise dismissal for non-appearance, the appeal must be decided on merits and cannot be dismissed for default.

---