GST Appellate Authority Must Pass Order on Merits Even of Non Appearance: Kerala HC [Read Order]

In a significant case, the Kerala High Court has ruled that, under the Central Goods and Services Tax Act (CGST Act 2017), an appellate authority must evaluate an appeal's grounds even in cases when the appellant does not present. Observing that the impugned order was not issued on merits and without any points for determination, the Court set it aside after terming it "perverse".

St. Antony Trading and Transport Pvt Ltd, the petitioner, filed a writ petition challenging an order passed by the Joint Commissioner (Appeals) dismissing an appeal without any determination solely on the ground of non-appearance despite three adjournments.

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Disapproving of the appellate authority's order, the Court observed that section 107(12) of the CGST Act specifically states that the order of the Appellate Authority disposing of the appeal shall be in writing and shall state the points for determination and the reasons for the decision. In the light of sub-clause (12) of Section 107 of the CGST Act, it is evident that the Appellate Authority has to consider the matter on merits and is not entitled to dismiss an appeal merely for non-appearance.

Of course, when there is failure of the appellant to appear, the Appellate Authority shall not grant more than three adjournments to a party during the hearing of the appeal. Despite the failure of an appellant to appear, the Appellate Authority has to pass an order after determining the points for consideration, and the decision should be on merits."

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A single bench of Justice Bechu Kurian Thomas stated that the order must be passed on merits and that the dismissal cannot be merely for default. Observing that the impugned order was not issued on merits and without any points for determination, the Court set it aside after terming it "perverse". The authority was directed to reconsider the matter afresh, after granting a fresh opportunity of hearing to the petitioner.

To Read the full text of the Order CLICK HERE

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