Fair hearing in GST appeals bars ex parte merits disposal when the appellant is absent; matter remanded for fresh decision.

Under the Uttar Pradesh GST Act, the appellate authority must give the appellant a fair hearing, conduct further inquiry where necessary, and pass a reasoned written order on the points for determination. The statutory scheme does not permit disposal of an appeal on merits merely because the appellant is absent; the proper course in such circumstances is dismissal for default or non-prosecution. An ex parte merits decision without reasonable opportunity to be heard breaches audi alteram partem and is unsustainable. The Allahabad HC held the ex parte merits order illegal and arbitrary and remanded the matter for fresh decision after hearing both parties.

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Issues: Whether the appellate authority under the Uttar Pradesh Goods and Services Tax Act, 2017 could decide an appeal on merits in the absence of the appellant and whether such an ex parte merits order was sustainable.

Analysis: Section 107(8) to 107(12) of the Uttar Pradesh Goods and Services Tax Act, 2017 obligate the appellate authority to afford an opportunity of hearing, consider the appeal by making further inquiry where necessary, and pass a written order stating the points for determination, the decision and reasons. The statutory scheme does not contemplate disposal on merits merely because the appellant is absent. In such a situation, the proper course is dismissal for default or non-prosecution rather than adjudication on merits. Deciding the appeal ex parte on merits without reasonable opportunity also violates the rule of audi alteram partem and the requirement of a fair hearing.

Conclusion: The ex parte merits order was illegal and arbitrary, and the matter was remanded to the appellate authority for fresh decision after hearing the parties.

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