M/S S K Construction And Company vs. The State Of Bihar

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, specifically sub-sections (8), (9), (10), (11), and (12), to examine the merits of the appeal and the grounds raised by the appellant, even if the appellant or their authorized representative is absent. The Appellate Authority cannot abdicate its powers by dismissing an appeal without any reasoning or proper examination of the case. The Court found that the appellate order dated January 11, 2023, was passed without adequate discussion of facts and figures and thus was not a speaking order. The ratio decidendi is that appellate authorities must decide appeals on merits, even in cases of non-prosecution, by considering the grounds raised and conducting further inquiries if necessary, as empowered by the statute. The Court set aside the appellate order and directed the restoration of the appeal before the Appellate Authority.

Facts

The petitioner, M/s S K Construction and Company, challenged an appellate order dated January 11, 2023, passed by the Additional Commissioner of State Tax (Appeal), Darbhanga Division. This order dismissed the petitioner's appeal for non-prosecution, citing the absence of the petitioner or their authorized representative. The petitioner argued that the appellate authority's reason for dismissal, a "mismatch being in existence," was cursory and lacked any discussion of facts or figures. The appeal was filed within the prescribed time limit.

Key Issues

1. Whether the Appellate Authority has a statutory duty to examine the merits of an appeal and the grounds raised by the appellant, even in the absence of the appellant or their authorized representative before the Appellate Authority, under Section 107 of the Bihar Goods and Services Tax Act? Petitioner's Contention: The petitioner argued that the Appellate Authority has a duty 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, even if the appellant is absent. Dismissing the appeal without reasoning and solely on the ground of non-appearance would amount to abdicating its statutory powers. The petitioner relied on the High Court's own decision in Purushottam Stores vs. The State of Bihar & Ors. Revenue's Contention: The judgment does not record any specific arguments made by the revenue or the Union of India regarding this issue.