2026 (2) TMI 415 - HC - GST

Failure to consider documentary evidence leads to quashing of appellate order and remand for fresh hearing.

The appellate authority failed to consider documentary evidence previously filed before the adjudicating authority and did not assess material despite the ... Remand for fresh hearing - consideration of documentary evidence - right to personal hearing - quash and set aside appellate order - costs for non-appearance - HELD THAT:- The petitioner herein did not appear before the appellate authority. However, simultaneously it is also noticed by us that the appellate authority has not considered the documentary evidence provided by the petitioner before the adjudicating authority, who had passed the order in favour of the petitioner sanctioning refund. It is also noticed by us that the petitioner, even though he was served hearing notices on 31.01.2025 and 11.02.2025 by the appellate authority, did not appear before the appellate authority. It is the case of the petitioner that under a bona fide impression that a link to join virtual hearing would be provided along with or within the notices themselves, however, in the absence of any such link, the petitioner was unable to access or attend the scheduled personal hearing. Thus, though we cannot find any fault in the approach of the appellate authority in passing the impugned order without hearing the petitioner, as the petitioner did not appear, though the notices were served upon him, however the appellate authority was required to consider all the documentary evidences, which were produced by the petitioner before the adjudicating authority while passing the final order. Under the circumstances, we set-aside the impugned order of appeal and remand the matter to the appellate authority. Issues: Whether the appellate authority erred in setting aside the adjudicating authority's refund sanction without considering the documentary evidence placed before the adjudicating authority and without rendering a reasoned order, thereby necessitating setting aside of the appellate order and remand for fresh hearing.Analysis: The appellate order shows that the petitioner did not appear at the appellate hearing despite service of notices; however, the appellate order did not consider the documentary evidence which had been produced before the adjudicating authority that granted the refund. The requirement to consider material documentary evidence placed before the adjudicating authority is distinct from the procedural question of the petitioner's non-appearance, and an appellate authority passing final orders must examine and record findings on such documents. The appropriate remedy where an appellate order fails to consider relevant documentary evidence and does not record reasoned findings is to set aside that order and remand the matter for fresh hearing where documents may be considered and a speaking order rendered.Conclusion: The appellate order setting aside the refund sanction is set aside and the matter is remanded to the appellate authority for fresh hearing and decision after consideration of the documentary evidence and on a date where the petitioner may appear; petitioner to deposit costs of Rs.10,000/-; appellate authority to pass a reasoned speaking order within 12 weeks from the hearing.