Patna HC: Appellate Authority Must Justify Dismissal of Appeal Under Bihar GST Act 2017

The Patna High Court has made a ruling stating that the Appellate Authority cannot dismiss an appeal without providing any reasoning or questioning the proper presentation of the appeal. Such actions would be considered a failure to fulfil the authority’s responsibilities as mandated by the Bihar Goods and Services Tax Act.

The division bench, comprising Chief Justice K. Vinod Chandran and Justice Rajiv Roy, referred this issue to a previous case, Purushottam Stores vs. The State of Bihar & Ors; CWJC No. 4349 of 2023 decided on 25.04.2023. The bench examined the relevant sections (8), (9), (10), (11), and (12) of Section 107 of the Bihar Goods and Services Tax Act, and noted that the Appellate Authority is legally obligated to review the merits of the case and consider the grounds presented by the appellant.

The accountability remains even if the appellant is not physically present before the Appellate Authority and the authority must make a decision based on the merits of the case.

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It was noted by the bench that if the Appellate Authority dismisses an appeal without giving any explanation and concludes that the appellant did not properly present the appeal, the authority might be ignoring its powers. This is particularly significant considering that the provisions empower the Appellate Authority to conduct additional investigations as deemed necessary to make a decision on the appeal, which must also address the raised concerns.

The petitioner, M/s S K Construction and Company, an Indian Partnership Firm, challenged the appellate order issued on 11.01.2023, which dismissed their appeal due to non-prosecution.

Although the appeal was filed within the specified time frame, the appellate authority rejected it, citing the absence of the petitioner or their authorized representative. The stated reason for rejection, which was a purported mismatch, failed to adequately scrutinize the facts and figures involved.

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The Court set aside the appellate order and ordered the revocation of the appeal before the Appellate Authority.

Furthermore, the Court directed the petitioner to appear before the Appellate Authority on November 9, 2023. The Appellate Authority or its office was instructed to arrange a hearing date for that specific day, ensuring that the appellant’s presence is duly acknowledged. The proceedings were to continue as scheduled, and the appeal was to be resolved on its merits within three months from the last hearing if the hearing date was issued by the office.

Moreover, the High Court directed that the petitioner must attend the appeal hearing. It was mandated that the Appellate Authority thoroughly assess the appeal and provide a comprehensive order, even if the appellant or their representative were not present. The writ petition was approved with the mentioned instructions.