Non-appearance does not excuse GST appellate authorities from issuing reasoned orders under Section 107(12).

The original authority raised a demand of ₹4,90,858 against the petitioner for the tax period April 2018 to March 2019 under Sections 73(8), 73(9) and 50 of the CGST/KGST/IGST Acts, 2017.

The petitioner appealed under Section 107 of the KGST Act, 2017. The appellate authority dismissed the appeal after the petitioner failed to appear, stating that it had considered the appeal grounds and available records but found no reason to interfere with the original order.

The petitioner challenged that dismissal, seeking its quashing and a decision on the appeal on 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 that decision.

The Court also directed compliance with Sections 107(11) and (12).

It relied on the principles applied in Bondada Engineering Limited v. Office of the Assistant Commissioner of Central Tax and Others, W.P. No. 26900 of 2024, and M/s. Anand Aluminium Works v. Assistant Commissioner of Central Tax and Others, W.P. No. 104589 of 2026: where an appeal has been dismissed for non-prosecution, a justice-oriented approach may warrant setting aside the dismissal and remitting the matter so the statutory appeal can be considered afresh.

The appellate authority recorded the petitioner’s non-appearance and stated that it had reviewed the appeal grounds and available documents, but dismissed the appeal for non-appearance and found no basis to interfere with the original order.

The Court held that the impugned order lacked the reasoned determination required by Section 107(12), and that the petitioner’s statutory appeal was a substantial remedy on facts and law.

Following the approach in Bondada Engineering and Anand Aluminium Works, it set aside the dismissal and remitted the appeal for a fresh decision after giving the petitioner a reasonable opportunity to be heard.

The matter was remanded to the appellate authority to give the petitioner a reasonable opportunity and decide the appeal in accordance with Sections 107(11) and (12) of the KGST Act, 2017.

The petitioner was directed to appear before the appellate authority on 26 October 2026; the appeal was requested to be disposed of within two months from the date of first appearance, and all rival contentions were left open.