GST Appellate Authority Must Pass Order On Merits Even If There's No Appearance; Can't Dismiss For Default: Kerala High Court

The Kerala High Court has held that an appellate authority under the Central Goods and Services Tax Act (CGST Act 2017) must consider the merits of an appeal even if there is no appearance on behalf of the appellant.The Court stated that the order must be passed on merits and that the dismissal cannot be merely for default. Justice Bechu Kurian Thomas was considering a writ petition filed by an assessee 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.Disapproving of the appellate authority's order, the Court observed :"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."Reference was made to the judgment of Patna High Court in Purushottam Stores vs. State of Bihar.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.Appearances: Advocates Ammu Charles, K.Manoj Chandran, S A Manzoor (Pattanam) for petitionerGovt Pleader Jasmin MM for the StateCase : St. Antony Trading and Transport Pvt Ltd vs Joint Commissioner (Appeals)Citation: 2025 LiveLaw (Ker) 241Click here to read the judgment

GST Appellate Authority Must Pass Order On Merits Even If There's No Appearance; Can't Dismiss For Default: Kerala High Court

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