2026 (2) TMI 1329 - HC - GST

Independent assessment of explanations and documents is required; failure to do so leads to setting aside and remand.

An appellate authority must independently assess the appellant's explanations and documentary evidence and record reasoned conclusions; reproducing lower ... Non-application of mind - duty of appellate authority to consider submissions and documents on record - failure to consider records/documents on file - judicial review of administrative orders - remand for fresh consideration - HELD THAT:- It is the petitioner’s case that all documents in support of the petitioner’s explanation had already been furnished before the adjudicating authority. The appellate order impugned does not show any application of independent mind by the appellate authority. The appellate authority has paraphrased the observations of the adjudicating authority and has clearly glossed over the explanations given by the petitioner against the observations made by the adjudicating authority in the petitioner’s appeal before the appellate authority. Non-application of mind by the appellate authority is also evident from the repeated use of the same expression (which has already been extracted hereinabove) at the end of every conclusion that the appellate authority has reached in respect of every ground for demand of tax. To wit, while the appellate authority has said that no further explanation was given it has clearly lost sight of the explanation actually given by the petitioner in the petitioner’s grounds of appeal and has not dealt with the same. Such approach renders the appellate order uninformed and susceptible to reproach in judicial review. In the case at hand there is none. Similarly there is no consideration of the documents already on record. At least the order impugned does not reveal so. On such ground alone, the appellate order impugned dated June 17, 2025 is set aside and the matter is remanded to the appellate authority for fresh consideration on merits in the light of the documents already on record and upon proper consideration of the petitioner’s contention raised in the appeal filed before the appellate authority. WPA stands disposed of with the above observations. Issues: Whether the appellate authority applied independent mind and properly considered the appellant's explanations and documents in the appeal under Section 107 read with Section 73 of the WBGST Act, 2017 / CGST Act, 2017.Analysis: The appellate order reproduces the adjudicating authority's findings and records that 'no further explanation and supporting documents have been furnished' but does not address or assess the explanations contained in the grounds of appeal nor the documents already on record. Such omission shows non-application of mind because the appellate authority failed to examine the explanations, weigh their merit, or record reasons for rejecting them. Where explanations and documentary material are before the appellate authority, a reasoned assessment of those explanations and documents is required; absence of such assessment renders the appellate order susceptible to judicial review.Conclusion: The appellate order dated June 17, 2025 is set aside and the matter is remanded to the appellate authority for fresh consideration on merits in the light of the documents on record and the petitioner's contentions. The conclusion is in favour of the petitioner (assessee).Ratio Decidendi: An appellate authority must apply independent mind and record reasoned conclusions after assessing the explanations and documentary evidence on record; failure to do so warrants setting aside the appellate order and remanding the matter for fresh consideration.