Bihar Goods and Services Tax Act, 2017 | Appellate Authority's Dismissal of Appeal Without Reasoning Indicates Abdication of Powers: Patna High Court

The Patna High Court has ruled that the Appellate Authority, by dismissing the appeal without providing any reasoning and questioning the proper presentation of the appeal, would be abdicating its powers as mandated by the Bihar Goods and Services Tax Act.The division bench of Chief Justice K. Vinod Chandran and Justice Rajiv Roy observed, “We have already held in Purushottam Stores vs. The State of Bihar & Ors; CWJC No. 4349 of 2023 decided on 25.04.2023; looking at the provisions of the Bihar Goods and Services Tax Act especially sub-sections (8), (9), (10), (11) and (12) of Section 107 of the Act, that the Appellate Authority has a duty and an obligation under the statute to look into the merits of the matter and also examine the grounds raised by the appellant, even if there is no presence recorded of the appellant before the Appellate Authority and decide the issue on merits.”“The Appellate Authority by dismissing the appeal without any reasoning and also finding the appellant having not presented the appeal properly would b e 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 bench added.The petitioner, M/s S K Construction and Company, an Indian Partnership Firm, contested the appellate order issued on 11.01.2023, which dismissed their appeal due to non-prosecution.The appeal had been filed within the stipulated time frame, but the appellate authority rejected it citing the absence of the petitioner or their authorized representative. However, the given reason for the rejection, a supposed mismatch, lacked thorough examination of the facts and figures.The Court overturned the appellate order and instructed the restoration of the appeal before the Appellate Authority.Additionally, the Court mandated the petitioner's presence before the Appellate Authority on 09.11.2023. The Appellate Authority or its office was directed to set a hearing date for that day, ensuring proper acknowledgment from the appellant. If the hearing date was issued by the office, the proceedings were to continue on the scheduled date, and the appeal was to be resolved on its merits within three months from the last hearing.Furthermore, the Court instructed the petitioner to actively participate in the appeal hearing. Even in the absence of the appellant or their representative, the Appellate Authority was to evaluate the appeal thoroughly and issue a detailed order.The writ petition was granted with the aforementioned directives.Counsel/s For the Petitioner/s: Mr. Dinesh Kumar, Advocate Mr. Amar Kumar, AdvocateCounsel/s For the Respondent/s: Mr. Vikash Kumar ( Sc 11 )Counsel/s For the UOI: Dr. Krishna Nandan Singh, ASG Mr. Anshuman Singh, CGC Mr. Abhijeet Gautam, JC to ASG Ms. Prakritita Sharma, JC to ASGLL Citation: 2023 Livelaw (Pat) 129Case Title: M/s S K Construction and Company vs vs The State of Bihar and OrsCase No.: Civil Writ Jurisdiction Case No.11842 of 2023Click Here To Read / Download Judgment

Bihar Goods and Services Tax Act, 2017 | Appellate Authority's Dismissal of Appeal Without Reasoning Indicates Abdication of Powers: Patna High Court

Bhavya Singh

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