Appeal Ordered To Be Reconsidered When It Was Rejected For Non-Appearance On Three Dates Before The Appellate Authority
Facts of the Case: –
- The petitioner who was registered under the Goods and Service Tax Act, 2017, was issued with a show cause notice for cancellation of registration on 27th November, 2020.
- The petitioner did not file the reply to the said show cause notice, consequently, a order of cancellation of registration was passed by the Taxing Authority cancelling the registration of the petitioner.
- Pursuant to which, the petitioner filed an application for revocation of cancellation of registration, however, the same was rejected vide order dated 26.04.2021.
- The petitioner being aggrieved of the said rejection order filed an appeal before the first Appellate Authority, which was rejected by the first Appellate Authority on the ground that the counsel for the petitioner has not appeared on three dates and pressed the appeal, and in view of Section 107(9) of the Act, 2017, only three adjournments can be granted. Thereafter, the First Appellate Authority proceeded to pass an ex-parte order rejecting the appeal.
On the behalf of the petitioners, it was submitted the notice was issued under Section 29(2)(a) of the Act of 2017 while the registration has been cancelled on the strength that bogus transaction has been entered between the petitioner and supplier firm under Section 74 of the Act. To support its stand, reliance was placed on the decision of M/s Ram Krishna Garg Supplier vs. State of U.P. and others, Writ Tax No.1064 of 2021, decided on 15.07.2022.
On the other hand, while opposing the writ petition it was submitted on the behalf of the respondents that no ground has been taken by the appellant before the First Appellate Authority and the First Appellate Authority was left with no option but to proceed and decide the appeal in absence of counsel for the appellant.
Held: –
- The Hon’ble Court after considering the submissions made and facts of the case, found that by ex parte order the first appeal filed by the petitioner has been dismissed as he failed to appear before the authority on 06.04.2021, 24.09.2021 and 02.11.2021.
- Thereafter, the Hon’ble Court taking a lenient view, directs the Appellate Authority to reconsider the appeal of the petitioner on merits after hearing the counsel for the petitioner and decide the same within a period of one month from the date of production of certified copy of this order. It was further directed that the petitioner's counsel shall remain present on the date fixed by the First Appellate Authority and shall argue the matter on merits.
The Hon’ble Court with the above findings disposed of the writ petition.
To read the complete judgment 2022 Taxo.online 1263
