2024 (10) TMI 1170 - HC - GST

Violation of principles of natural justice - rejection of impugned order without assigning any reason - HELD THAT - It is settled law that reason is the heartbeat of every conclusion. An order without valid reasons cannot be sustained. To give reasons is the rule of natural justice. One of the most important aspect for necessitating to record reason is that it substitutes subjectivity with objectivity. It is well settled that not only the judicial order, but also the administrative order must be supported by reasons recording in it. The Hon'ble Supreme Court, in the cases of ASSISTANT COMMISSIONER, COMMERCIAL TAX DEPARTMENT, WORKS CONTRACT LEASING, KOTA VERSUS M/S SHUKLA BROTHERS 2010 (4) TMI 139 - SUPREME COURT , TRAVANCORE RAYONS LTD. VERSUS UNION OF INDIA 1969 (10) TMI 23 - SUPREME COURT have observed that the administrative authority and the tribunal are obliged to give reasons, absence whereof would render the order liable to judicial chastisement. Once the reason has not been assigned by the competent authority for levying the penalty then on this ground alone, the impugned orders cannot be sustained. In view of the facts and circumstances of the case as well as law laid down by this Court, the impugned order passed by the appellate court dated 31.3.2023 cannot be sustained in the eyes of law and same is hereby quashed - Petiiton allowed.

Summary

The High Court quashed the impugned order dated 31.3.2023 for rejecting the petitioner's appeal as no reason was provided, violating the rule of natural justice. The court cited the importance of giving reasons for administrative orders. The impugned order was set aside, and the matter was remanded to the appellate authority for a fresh decision within three months. The writ petition was allowed.