2024 (1) TMI 279 - HC - GST

Landmark Ruling: Procedural Defect Overturned, Appeal Restored with Mandatory Hearing Ensuring Substantive Justice for Appellant

M/s Nav Nirman Construction Versus The Union of India, The Under Secretary, Ministry of Finance (Department of Revenue), Government of India, New Delhi. The State of Bihar, The Principal Secretary, Department of Finance, The Joint Commissioner State Tax, The Assistant Commissioner State Tax, Bhabua

HC allowed petitioner's challenge to appellate order, setting aside dismissal for non-prosecution. Court directed restoration of appeal and mandated ... Maintainability of appeal - appeal dismissed for non-prosecution - appeal was filed in time and the appellate authority merely for the reason of absence of the petitioner or the authorised representative rejected the appeal - HELD THAT:- Looking at the provisions of the Bihar Goods and Services Tax Act especially sub-sections (8), (9), (10), (11) and (12) of Section 107 of the Act, that the Appellate Authority has a duty and an obligation under the statute to look into the merits of the matter and also examine the grounds raised by the appellant, even if there is no presence recorded of the appellant before the Appellate Authority and decide the issue on merits. The Appellate Authority by dismissing the appeal for non-prosecution would be abdicating its powers especially looking at the provisions where the Appellate Authority has been empowered to conduct such further enquiry as found necessary to decide the appeal, which decision also shall be on the points raised. The impugned order set aside - petition allowed. Issues involved: Challenge to appellate order for non-prosecutionSummary:Issue 1: The petitioner challenged the appellate order which dismissed the appeal for non-prosecution, despite the appeal being filed in time.The High Court referred to a previous case, Purushottam Stores vs. The State of Bihar, and highlighted the duty of the Appellate Authority to look into the merits of the matter and examine the grounds raised by the appellant, even in the absence of the appellant. The Court emphasized that the Appellate Authority has the power to conduct further inquiry to decide the appeal on the points raised.Issue 2: Court's DecisionThe High Court set aside the order dismissing the appeal and directed the restoration of the appeal before the Appellate Authority. The petitioner was instructed to appear before the Appellate Authority on a specified date, with the Authority required to fix a hearing date and dispose of the appeal on merits within three months from the last hearing. The petitioner was directed to cooperate in the hearing, and even in the absence of the appellant or authorized representative, the Appellate Authority was instructed to consider the appeal on merits and pass a speaking order.Conclusion:The writ petition was allowed with the above directions.