2024 (9) TMI 395 - HC - GST

Violation of principles of natural justice - lack of reasons - appellate authority instead of dismissing the appeal for default had proceeded to adjudicate the appeal on merits - HELD THAT - On 20th December, 2023 the appellant did not appear at the time of hearing of the appeal. The appellate authority, however, instead of dismissing the appeal for default had proceeded to adjudicate the appeal on merits while recording his satisfaction that the order passed by the proper officer is correct and complete. Unfortunately while doing so he had failed to give reasons. He had also not dealt with any of the grounds as set forth in the appeal filed by the petitioners. In absence of reasons it becomes extremely difficult to understand the basis of the satisfaction of the appellate authority in concluding that the order passed by the proper officer is correct. Failure to give reasons goes against the principle of natural justice and vitiates the very order itself. The order passed by the appellate authority on 25th January, 2024 cannot be sustained and the same is accordingly set aside. The matter is remanded back to the appellate authority for readjudication on merits - Petition disposed off by way of remand.

Summary

The High Court set aside the order of the appellate authority under Section 107 of the CGST/WBGST Act, 2017 for lack of reasons, remanding the matter for re-adjudication on merits within eight weeks. The writ petition was disposed of accordingly.