First Appellate Authority Has No Power to Dismiss Appeal for Non-Prosecution — Must Decide on Merits by Speaking Order Even if Appellant Is Absent: GSTAT Jalandhar Bench Remands Exide Life Insurance Appeal

The GSTAT Jalandhar Bench has set aside a one-page non-speaking appellate order dismissing the appeal of a life insurance company for non-prosecution, holding that Section 107 does not confer upon the First Appellate Authority any power to dismiss an appeal for want of prosecution, and that even if an adjournment is refused, the Authority is obligated to decide the appeal on merits by a speaking order that states the points for determination and the reasons for the decision. The ruling by Vice-President Suman Jain and Member (Technical) Harpinder Pal Singh Ghotra in APL/94/JLN/2026 (Exide Life Insurance Company Ltd. v. Commissioner SGST Punjab, decided 29.09.2026) follows the Supreme Court’s Balaji Steel Re-rolling Mills (2014), the Patna HC’s Purushottam Stores, and the P&H HC’s Krishna Maruti Limited (2025) and Hudson Insurance Brokers (2026).

The appellant had sought an adjournment of the hearing fixed for 17.11.2025 and requested a fresh date, but the FAA dismissed the appeal the same day without considering the request, by a cryptic order that merely stated the grounds were ‘perused’ and the original order ‘requires no interference’. The Tribunal held this was in the teeth of Section 107(8) (right to hearing), Section 107(11) (inquiry and reasoned disposition) and Section 107(12) (written order with points of determination and reasons). At most the FAA can proceed ex-parte, but it must still decide on merits. The substantive dispute — whether inter-branch invoices without actual supply of services, raised to pass on credit, attract penalty under Section 122(1)(ii) and (xvii) — was left open for the FAA to decide afresh.

- 2026-juristway.com-2805-GSTAT(Jalandhar)-GST  |  GSTAT Jalandhar Bench  |  APL/94/JLN/2026  |  29.09.2026