2023 (11) TMI 660 - HC - GST

Maintainability of appeal - appeal dismissed for non-prosecution - despite opportunity being granted to the appellant to produce the documents in support of his case, he did not produce the same - supplier was not issued a notice in the appeal - principles of natural justice - HELD THAT - The Appellate Authority even while considering the appeal ex parte will have to consider the grounds raised in the memorandum of appeal, deciding the appeal on merits, failing which it would be abdicating its powers especially looking at the provisions where the Appellate Authority has been empowered to conduct such further enquiry as found necessary to decide the appeal, which decision also shall be on the points raised. The appeal restored before the Appellate Authority - petitioner shall appear before the Appellate Authority on 25.07.2023. The Appellate Authority or its office shall fix a date of hearing on the said date, with due acknowledgment taken from the appellant; if the date of hearing is issued from the office, proceed with the hearing on the date fixed and dispose of the appeal on merits within three months from the date of last hearing. Petition allowed.

Summary

Issues involved: Challenge to ex parte order of appellate authority

The petitioner challenges the ex parte order of the appellate authority at Annexure-4. The appeal was dismissed for non-prosecution despite the opportunity granted to produce supporting documents and the supplier not being issued a notice in the appeal. The High Court referred to the provisions of the Bihar Goods and Services Tax Act, emphasizing the duty of the Appellate Authority to examine the grounds raised by the appellant and decide the issue on merits, even in ex parte situations. The Court set aside the order and directed the restoration of the appeal before the Appellate Authority.

Details of the Judgment:

In a previous case, Purushottam Stores vs. The State of Bihar & Ors, the Court highlighted the importance of the Appellate Authority's obligation to consider the grounds raised in the memorandum of appeal and decide on merits, as per the provisions of the Act. The Appellate Authority was reminded of its power to conduct further inquiries necessary to decide the appeal, with the decision based on the points raised. The High Court, therefore, emphasized the need for the Appellate Authority to not abdicate its powers and to ensure a thorough examination of the appeal.

The Court directed the petitioner to appear before the Appellate Authority on a specified date, with instructions for the Authority to fix a hearing date and dispose of the appeal on merits within three months from the last hearing. Cooperation from the petitioner was mandated during the appeal hearing, and even in the absence of the appellant or their representative, the Appellate Authority was required to consider the appeal on merits and issue a speaking order. Ultimately, the writ petition was allowed with the above directions, ensuring a fair and comprehensive review of the appeal before the Appellate Authority.