M/S Rangoli Hardware Mach Marts Jamui vs. The Union Of INDIA

Facts

The petitioner, M/s Rangoli Hardware Mach Marts Jamui, through its proprietor, 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. The petitioner is seeking relief from this dismissal. The respondents are the Union of India and various authorities of the State of Bihar, including the Additional Commissioner of State Taxes (Appeal) and the Assistant Commissioner of State Taxes.

Held

The Court held that the Appellate Authority has a statutory duty under sub-sections (8), (9), (10), (11), and (12) of Section 107 of the Bihar Goods and Services Tax Act to examine the merits of the appeal and the grounds raised by the appellant, even if the appellant or their representative is absent. Dismissing an appeal for non-prosecution without considering the merits constitutes an abdication of the Appellate Authority's powers. The Court cited its previous decision in Purushottam Stores vs. The State of Bihar & Ors. The appellate authority is empowered to conduct further inquiries as necessary. The order dated 30.01.2023, which dismissed the appeal, was set aside. The appeal was restored to the file of the Appellate Authority. The petitioner was directed to appear before the Appellate Authority on 18.05.2023, and the Appellate Authority was directed to fix a date for hearing and dispose of the appeal on merits within three months from the date of the last hearing. The Court also directed that even in the absence of the appellant or their representative on the date of hearing, the Appellate Authority shall consider the appeal on merits and pass a speaking order.

Key Issues

1. Whether the Appellate Authority, under the Bihar Goods and Services Tax Act, has a statutory duty to examine the merits of an appeal even in the absence of the appellant or their authorized representative? (Question of law, turning on Section 107(8), (9), (10), (11), and (12) of the Bihar Goods and Services Tax Act). Petitioner's contention: The Appellate Authority has a statutory obligation to decide the appeal on its merits, irrespective of the appellant's presence, and dismissing it for non-prosecution amounts to abdicating its powers. The petitioner relies on the provisions of Section 107 of the Act. Revenue/State's contention: Not recorded in the judgment.