GST appellate orders must state points for determination, decisions, and reasons under Section 107(12).

The petitioner challenged the appellate authority’s order dated 7 April 2026 dismissing its appeal against a tax demand of ₹2,27,488 for FY 2017–18.

The appeal was dismissed after the petitioner failed to appear, although the authority also stated that it had considered the grounds of appeal and available records and found no reason to interfere with the original order.

The petitioner sought, among other reliefs, the benefit of Circular No. 183/15/2022-GST; the High Court ultimately remanded the appeal without deciding that claim.

1. Whether the appellate authority’s dismissal of the statutory appeal, following the petitioner’s non-appearance, complied with Section 107(12) of the KGST Act, 2017.

2. Whether the petitioner should be given a further opportunity to prosecute the appeal on its merits.

Section 107(12) of the KGST Act, 2017 requires an appellate order to be in writing and to state the points for determination, the decision on those points, and the reasons for the decision.

The Court also directed reconsideration in accordance with Section 107(11) and (12).

Relying on the approach in Bondada Engineering Limited v. Office of the Assistant Commissioner of Central Tax and Others, W.P. No. 26900 of 2024, decided on 20 March 2025, the Court treated a justice-oriented opportunity to prosecute an appeal on its merits as appropriate where the appeal had been dismissed for non-prosecution.

Although the petitioner had not appeared, the appellate authority had also referred to its review of the appeal grounds and available records.

The High Court held that the order did not satisfy Section 107(12), which requires the points for determination, decisions on those points, and reasons to be stated.

Given that the appeal was a statutory remedy and the petitioner had not received a merits reconsideration meeting that requirement, the Court set the order aside and remitted the matter for a fresh decision after giving the petitioner a reasonable opportunity.

It left the parties’ rival contentions open and did not decide the petitioner’s entitlement to the Circular’s benefit.

The appellate order dated 7 April 2026 was set aside, and the matter was remanded for reconsideration in accordance with Section 107(11) and (12) of the KGST Act, 2017, after providing the petitioner a reasonable opportunity to present its case.

The petitioner was directed to appear before the appellate authority on 12 October 2026; the authority was requested to decide the appeal within two months of the first appearance.

All rival contentions were left open.