Statutory appellate powers prevail over procedural default rules; an assessment appeal cannot be dismissed merely for non-attendance.

In an appeal against an assessment order under the Maharashtra Value Added Tax Act, 2002, the appellate authority must decide the matter on merits in the manner prescribed by Section 26(5)(a), which empowers it to confirm, reduce, enhance or annul the assessment. A procedural rule allowing dismissal for non-attendance cannot override the parent statute. Applying the principle that subordinate rules yield to the Act where there is inconsistency, the dismissal of the appeal for absence was held unsustainable. The matter was remitted to the appellate authority for fresh decision on merits in accordance with the Act, subject to further proceedings as directed.

---

---

Issues: Whether the appellate authority under the Maharashtra Value Added Tax Act, 2002 could dismiss an appeal against an assessment order for non-attendance, or was bound to decide it on merits in accordance with Section 26(5)(a), notwithstanding Rule 36(2) of the Maharashtra Value Added Tax Rules, 2005.

Analysis: Section 26(5)(a) confers upon the appellate authority the power, in an appeal against assessment, to confirm, reduce, enhance or annul the assessment. The rule permitting dismissal for non-appearance could not override the statutory mandate. The settled principle applied was that where a rule conflicts with the parent statute, the statute prevails. On that basis, the appellate authority was required to determine the appeal in the manner prescribed by the Act and not terminate it merely for absence of the appellant.

Conclusion: The dismissal of the appeal for non-attendance was unsustainable and the impugned order was liable to be set aside.

Final Conclusion: The matter was remitted to the appellate authority for fresh decision on merits in accordance with the Act, with appearance and costs directed as conditions for further proceedings.

Ratio Decidendi: In an appeal against an assessment order, the powers conferred by the parent statute must be exercised in the statutory manner, and a rule of procedure cannot authorize dismissal of the appeal in a way that defeats the substantive mandate of the Act.

---