Belagavi Pump Trader Gets Fresh Hearing After GST Appeal Dismissed For Non-Appearance, Subject To ₹10,000 Costs: Karnataka HC

The petitioner challenged the dismissal of its statutory appeal under Section 107 of the KGST Act, 2017, concerning a demand of ₹3,79,786 for FY 2019–20.

The Joint Commissioner of Commercial Taxes (Appeals) dismissed the appeal for non-appearance, stating that it had also considered the grounds of appeal and available departmental records but found no basis to interfere with the assessment.

The petitioner contended that the dismissal denied it a fair opportunity to present its case and that the appellate order did not satisfy the statutory requirements.

The judgment refers to the challenged order as dated 4 April 2026 in the petition and at the outset, but its final order identifies it as dated 4 March 2026.

Section 107(8) of the KGST Act, 2017 requires the Appellate Authority to give the appellant an opportunity of being heard; Section 107(9) permits adjournments for sufficient cause, subject to its stated limit; and Section 107(12) requires a written appellate order stating the points for determination, the decision on those points, and the reasons for that decision.

The Court also relied on the approach in Bondada Engineering Limited v. Office of the Assistant Commissioner of Central Tax and Others, W.P. No. 26900 of 2024, and the Coordinate Bench decision in W.P. No. 107961 of 2026: where an appeal has been dismissed for non-prosecution, a justice-oriented approach may warrant setting aside the order and remitting the appeal for fresh consideration.

The appellate order recorded the petitioner’s non-appearance but also stated that it had examined the grounds of appeal and available records before finding no reason to interfere with the original order.

The Court held that the order lacked the particulars required by Section 107(12), and that the appeal was a statutory remedy on facts and law which should be determined in accordance with the Act’s procedural requirements.

Following the cited Coordinate Bench decisions, the Court set aside the dismissal and directed reconsideration after giving the petitioner a reasonable opportunity to make its case.

The appellate order was set aside and the matter remanded to the Appellate Authority for fresh consideration in accordance with Section 107(11) and (12) of the KGST Act, 2017, after a reasonable opportunity to the petitioner.

The remand was subject to payment of ₹10,000 to the Army Women’s Welfare Association (AWWA) Corpus Fund within one week, with proof of payment to be filed with the Registry and the Appellate Authority.

The petitioner was directed to appear before the Appellate Authority on 29 October 2026; the appeal was to be disposed of, if possible, within two months from the first appearance, with all rival contentions left open.