M/S Nav Nirman Construction vs. The Union Of INDIA

Held

The Court held that the Appellate Authority has a statutory duty and obligation under Section 107 of the Bihar Goods and Services Tax Act to look into the merits of the matter and examine the grounds raised by the appellant, irrespective of the presence of the appellant or their authorized representative. Dismissing the appeal for non-prosecution would amount to the Appellate Authority abdicating its powers, especially considering its empowerment to conduct further inquiries as necessary to decide the appeal on the points raised. The Court set aside the appellate order dated 28.01.2023 and directed the restoration of the appeal before the Appellate Authority. The petitioner is to appear on 10.01.2024, and the Appellate Authority is to fix a hearing date and dispose of the appeal on merits within three months from the last hearing, even if the appellant is absent. The petitioner is directed to cooperate with the hearing.

Facts

The petitioner, M/s Nav Nirman Construction, challenged an appellate order that dismissed their appeal for non-prosecution. The appeal was filed within the stipulated time. The Appellate Authority rejected the appeal solely on the grounds of the absence of the petitioner or their authorized representative during the hearing. The petitioner contends that the Appellate Authority has a statutory duty to examine the merits of the appeal even in the absence of the appellant.

Key Issues

1. Whether the Appellate Authority, under the Bihar Goods and Services Tax Act, is obligated to decide an appeal on its merits even if the appellant or their authorized representative is absent, or can it dismiss the appeal for non-prosecution? The petitioner argued that Section 107 of the Bihar Goods and Services Tax Act, particularly sub-sections (8), (9), (10), (11), and (12), mandates the Appellate Authority to examine the grounds raised by the appellant and decide the matter on its merits. They contended that dismissing the appeal for non-prosecution amounts to the Appellate Authority abdicating its statutory duty. The revenue or State did not record any specific arguments against this contention in the judgment.