Reasoned appellate orders under GST are mandatory; a non-speaking merits order was set aside and remanded for fresh hearing.

An appellate order under GST cannot be sustained where it purports to decide the appeal on merits without dealing with the grounds raised and without recording reasons. The High Court held that such a non-speaking order offends the fairness requirement inherent in natural justice, particularly when the authority chooses not to dismiss the matter for default. The appellate authority had merely stated that the assessment order was correct and complete, but gave no reasons and addressed none of the appeal grounds. The order was set aside and the matter remanded for fresh adjudication on merits after giving the petitioners an opportunity of hearing.

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Issues: Whether an appellate order under the GST law, which proceeds on merits without dealing with the grounds of appeal and without recording reasons, can be sustained, and whether the matter should be remanded for fresh adjudication.

Analysis: The appeal was decided on merits despite non-appearance of the appellant, but the appellate authority merely recorded satisfaction that the assessment order was correct and complete. No reasons were furnished and none of the grounds raised in appeal were dealt with. The absence of reasons made it impossible to discern the basis of the decision and offended the requirement of fairness inherent in natural justice. An order deciding an appeal on merits must disclose reasons, especially where the authority chooses not to dismiss the matter for default.

Conclusion: The appellate order was unsustainable and was set aside. The appeal was remanded to the appellate authority for fresh decision on merits after granting an opportunity of hearing to the petitioners.

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