2026-VIL-196-GSTAT-LCK
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SGST Tribunal

GST – Rejection of appeal on account of non-appearance - Demand on input tax credit confirmed ex parte on the basis of mismatch between GSTR-3B and GSTR-2A - The First Appellate Authority rejected the appeal as the Appellant did not appear due to medical issues - Whether the order of the First Appellate Authority is sustainable when the substantive dispute on the credit was not examined - HELD - The non-appearance before the adjudicating or appellate authority cannot, in the peculiar facts of the case, be treated as sufficient to conclude the proceedings without consideration of the substantive dispute. Sufficient cause has to be considered in the context in which the party was proceeded against, which is the material date on which the appeal was disposed of - The medical certificate is accepted. The order of the First Appellate Authority does not adequately address the issue, does not reveal that the details of the case were examined on merit and does not record reasons on the material having a bearing on the tax liability - The case is decided on its merits on the facts presented before the Tribunal - Mismatch of GSTR-3B and GSTR-2A for the year 2017-18 - Verification procedure under the CBIC Circular dated 27.12.2022 - Appellant relied on a Chartered Accountant certificate issued during the pendency of the appeal, which the Respondent opposed because it was issued after the appeal was filed - Whether the alleged mismatch required examination in accordance with the verification procedure under the Circular and whether the certificate issued later can be considered - HELD - The difference between GSTR-3B and GSTR-2B or GSTR-2A requires examination, but it cannot in isolation be conclusive proof that credit was wrongly availed. It has to be appreciated in the context of the invoices, books of account, supplier particulars, payment records and other material forming part of the transaction - Since the dispute pertains to 2017-18, the verification approach under the Circular is relevant, as it facilitates examination of discrepancies by reference to the underlying transaction and supplier-side records instead of treating the numerical difference as determinative. The Circular requires a certificate where the difference exceeds the prescribed limit, and applies to cases where adjudication or appeal proceedings are still pending. The certificate is admissible as corroborative material because its subsequent date does not by itself render it inadmissible, particularly when the matters certified can be correlated with the books, invoices, returns and other contemporaneous records - The matter cannot be allowed to linger indefinitely for want of a proactive and responsive approach of the Respondent - The orders of the First Appellate Authority and the Adjudicating Authority are set aside to the extent challenged, and the consequential demand of tax, interest and penalty is set aside - The appeal is allowed by way of remand.
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