GST Update

 Desk of CA. Praveen Sharma – 1126  Series (CAPS) 

 Karnataka High Court IN THE CASE OF M/s Anand Alluminium Works v. Assistant Commissioner of Commercial Taxes & Others

Karnataka HC: GST appeal dismissed for non-appearance restored for decision on merits

Business name: M/s Anand Alluminium Works

Case: M/s Anand Alluminium Works v. Assistant Commissioner of Commercial Taxes & Others

Court: Karnataka High Court, Dharwad Bench

Case No.: W.P. No. 104589 of 2026

Background: The dispute concerned a GST demand of ?1,03,816 for FY 2017–18, challenged before the Joint Commissioner (Appeals), Belagavi. 

Appeal dismissed: The appellate authority dismissed the appeal for non-appearance, while briefly stating that available records did not justify interference.

Taxpayer’s challenge: The petitioner approached the High Court seeking an opportunity to prosecute its statutory appeal.

 Mandatory requirement: Under Section 107(12) of the KGST Act, an appellate order must identify the issues, record its decisions and explain the reasons.

Defect identified: The Court found that the dismissal order lacked these essential elements.

Statutory right: An appeal permits examination of facts and law; denial of this remedy affects a substantial right.

Relief granted: The appellate order dated 31 March 2026 was set aside, and the matter remanded for a reasonable hearing under Sections 107(11) and 107(12).

Directions: Appearance was fixed for 12 October 2026, with disposal requested within two months of the first appearance.

Scope: All rival contentions remained open. The relief restored the appeal; it did not decide the underlying tax liability.

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Best Regards,

CA Praveen Sharma

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