GST Appellate Order Quashed for Ignoring Grounds Despite Non-Appearance

The petitioner challenged an order passed by the Deputy Commissioner of Sales Tax before the Appellate Authority, raising multiple grounds including violation of principles of natural justice and denial of personal hearing under Section 75(4) of the CGST Act. The petitioner had also submitted that replies to RFT-08 notices were filed on time and that delay in generation of RFT-01 was due to system-related issues.

Despite these detailed submissions in the appeal memo, the Appellate Authority dismissed the appeal solely on the ground that the petitioner did not remain present during the personal hearing, without examining the merits or addressing the grounds raised.

Main Issue: Whether an appellate authority can dismiss an appeal solely due to non-appearance of the appellant without considering the grounds raised in the appeal.

Decision: The Gujarat High Court held that the Appellate Authority committed a clear illegality by rejecting the appeal without considering the submissions made in the appeal memo. The Court observed that even if the appellant does not remain present, the authority is still required to pass a reasoned order by dealing with the grounds raised. It was emphasized that the duty to adjudicate on merits cannot be avoided merely because of absence during personal hearing.

The Appellate Authority ought to have examined the issues raised, including alleged violation of natural justice.Accordingly, the impugned appellate order was quashed and the matter was remanded back for fresh adjudication. The Court directed that proper opportunity of hearing be given and clarified that even if the petitioner fails to appear, the appeal must still be decided on merits.

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