Aastha Traders vs. The State Of Bihar

Facts

The petitioner, Aastha Traders, challenged an appellate order dated January 11, 2023, passed by the Additional Commissioner of State Taxes (Appeal), Bhagalpur Division. This order dismissed the petitioner's appeal for non-prosecution, solely due to the absence of the petitioner or their authorized representative on the date of hearing. The appeal had been filed within the stipulated time. The petitioner contended that the appellate authority failed to consider the merits of the case, which was filed against an order passed by the Assistant Commissioner of State Taxes, Munger, for the tax period 2019-2020. The amount in dispute is not explicitly stated in the judgment.

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, 2017, particularly sub-sections (8) through (12), to look into the merits of the matter and examine the grounds raised by the appellant, even if the appellant or their authorized representative is absent. Dismissing an appeal for non-prosecution in such circumstances constitutes an abdication of the Appellate Authority's powers. The Court reasoned that the Appellate Authority is empowered to conduct further inquiries as necessary to decide the appeal, and such decisions must be based on the points raised. The appellate order dated January 11, 2023, was set aside. The appeal was restored before the Appellate Authority, with a direction for the petitioner to appear on July 15, 2023. The Appellate Authority was directed to fix a date of hearing, proceed with the hearing on merits, and dispose of the appeal within three months from the last hearing date, even if the appellant is absent. A speaking order was mandated. The writ petition was allowed.

Key Issues

1. Whether the Appellate Authority, under the Bihar Goods and Services Tax Act, 2017, is obligated to decide an appeal on its merits even in the absence of the appellant or their authorized representative, or if it can dismiss the appeal for non-prosecution? This issue turns on the interpretation of Section 107 of the Bihar Goods and Services Tax Act, 2017, specifically sub-sections (8), (9), (10), (11), and (12). Petitioner's contention: The Appellate Authority has a statutory duty to examine the grounds raised and decide the appeal on merits, irrespective of the appellant's presence. Dismissing for non-prosecution amounts to abdicating its powers. The petitioner relies on the Court's previous decision in Purushottam Stores vs. The State of Bihar & Ors; CWJC No. 4349 of 2023. Revenue's contention: The judgment records no specific argument from the respondent revenue.