Administrative tax appeals reserved for orders must be decided on merits, not dismissed later for non-prosecution.

An appellate authority that reserves a tax appeal for orders must decide it on merits and cannot later dismiss it for non-prosecution. The Punjab and Haryana High Court held that, in an administrative appeal, absence of the appellant at hearing may justify immediate dismissal then and there, but not a post-reservation to examine the written grounds. The court found the refusal to decide the appeal on merits inconsistent with law, set aside the dismissal, and remitted the matter to the appellate authority for fresh adjudication on merits.

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Issues: Whether an appellate authority, after reserving an administrative tax appeal for orders, could dismiss it for non-prosecution instead of deciding it on merits.

Analysis: The appeal was supported by a written memorandum containing the submissions and grounds. Once the appellate authority had reserved the matter for orders, it was required to examine the appeal on merits. In an administrative appeal, the course is different from that followed by regular courts in civil proceedings, and if the appellant was absent on the date of hearing, the authority could have dismissed the matter then and there, but not after reserving it for decision. The authority's refusal to decide the appeal on merits was therefore inconsistent with law.

Conclusion: The dismissal of the appeal for non-prosecution was unsustainable and was set aside. The matter was remitted to the appellate authority to decide the appeal on merits, with liberty to the petitioner to appear if so advised.

Final Conclusion: The writ petition succeeded and the appellate order was annulled, leaving the substantive tax appeal to be determined afresh on merits by the appellate authority.

Ratio Decidendi: Once an administrative appellate authority reserves a tax appeal for orders, it must decide the appeal on merits and cannot later dismiss it for non-prosecution.

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