The Patna High Court ruled that the Goods and Services Tax ( GST ) appellate authority must consider the grounds raised in the memorandum even while considering the appeal ex parte. The court provided the taxpayer with an opportunity to submit supporting documents, despite ample time provided by the appellate authority to the petitioner to do so; however, the petitioner failed to produce them. It even directed the authority to pass a reasoned order even if the appellant or its representative is not present for the hearing. Boost Your Business with SME IPO Funding Strategies – Enroll Now The petitioner had filed the appeal challenging the appellate order within the prescribed time frame; however, despite being given an opportunity to present supporting documents, he failed to do so, leading the appellate authority to dismiss his appeal.

The court referenced a precedent set in Purushottam Stores vs. The State of Bihar & Ors, where it was established that the Appellate Authority is mandated by the Bihar Goods and Services Tax Act to examine the merits of the case and the grounds raised in the memorandum of appeal. According to sub-sections (8), (9), (10), (11), and (12) of Section 107 of the GST Act, the Appellate Authority has an obligation to assess the merits, even in ex parte proceedings, stated the court.

This ensures that the authority does not abdicate its powers and fulfils its duty to conduct further inquiries as necessary to reach a well-informed decision. Boost Your Business with SME IPO Funding Strategies – Enroll Now Thus, the bench of Chief Justice K. Vinod Chandran and Justice Partha Sarthy had set aside the GST order and directed the restoration of the appeal before the Appellate Authority. The petitioner was directed to appear on November 12, 2024, with the authority responsible for scheduling the hearing. The court emphasised that the appeal must be resolved on its merits within three months from the last hearing date. It also instructed the petitioner to cooperate with the process, asserting that even if the appellant or their authorised representative is absent, the Appellate Authority must still evaluate the appeal on its merits and issue a speaking order.