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TMI Blog2019 (8) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... on the show cause notice dated 22/03/13 wherein it has been mentioned that invoices with the same numbers were issued on various dates and certain invoice were issued several times. The Tribunal has concluded by holding that no convincing defence was put forth by the appellant and therefore proceeded to confirm the order passed by the Commissioner (Appeals) I. An order without valid reasons cannot be sustained. To give reasons is engrained in the rule of natural justice - The Court cannot lose sight of the fact that a losing litigant has a cause to plead and a right to challenge the order if it is adverse to him. Opinion of the Court alone can explain the cause which led to passing of the final order. Whether an argument was rejected validly or otherwise, reasoning of the order alone can show. To evaluate the submissions is obligation of the Court and to know the reasons for rejection of its contention is a legitimate expectation on the part of the litigant. The contention raised before us that absence of reasoning in the impugned order would render the order liable to be set aside, particularly, in face of the fact that the Tribunal found merit and allowed the appeal - the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the tune of ₹ 36,46,346/-, and a penalty of ₹ 38,46,395/-, and imposed a further penalty of ₹ 38,46,395/- on Sri Lal Padamkar Singh, director. 5. The appellant aggrieved by the aforesaid order preferred appeals under section 35 of the Central Excise Act, 1944 before the Commissioner of Appeals which were dismissed by common order dated 14/10/2015 against which a second appeals were preferred before the CESTAT which were also dismissed by a common order impugned before us in the present appeals. 6. The appeals were admitted on 04/07/2019 on the following questions of law, namely:- 1. Whether the learned Tribunal was justified in not disposing the appeal on merits and not adjudicating the grounds of appeal raised in the memo of appeal despite the fact that the Tribunal being the last fact finding authority under the Act. 2. Whether the learned Tribunal was justified in not adjudicating the issues/submissions and no findings have been recorded for levy of penalty on the Director of the Company in the impugned order. 7. It has been submitted by the learned counsel of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that CESTAT has decided the appeals in the most cursory and casual manner and without giving any reasons for not accepting the pleas raised by the appellant, and therefore the said judgment suffers from vice of non-application of mind, which is writ large on the impugned order, and therefore the appeal deserves to be allowed on this score alone. 10. Sri Dipak Seth, learned counsel for the revenue, on this count did not oppose the arguments raised by the counsel for the appellant, but submitted that the matter deserves to be remanded to the Tribunal for reconsideration in accordance with law. 11. We have heard the counsel of the parties and perused the record. A perusal of the impugned order clearly indicates that the appellants had raised several grounds challenging the order of Commissioner of appeals including the ground that the weight of MS ingots had been determined by eye estimation and not by actual weightment and therefore there could not have been any addition on this score. It was also pleaded that invoice books were also compared in a follow-up action but no discrepancy was found and also that the Director of the applicant had neve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y objectivity. Absence of reasons renders the order indefensible/unsustainable particularly when the order is subject to further challenge before a higher forum. [Vide Raj Kishore Jha Vs. State of Bihar Ors. AIR 2003 SC 4664; Vishnu Dev Sharma Vs. State of Uttar Pradesh Ors. (2008) 3 SCC 172; Steel Authority of India Ltd. Vs. Sales Tax Officer, Rourkela I Circle Ors. (2008) 9 SCC 407; State of Uttaranchal Anr. Vs. Sunil Kumar Singh Negi AIR 2008 SC 2026; U.P.S.R.T.C. Vs. Jagdish Prasad Gupta AIR 2009 SC 2328; Ram Phal Vs. State of Haryana Ors. (2009) 3 SCC 258; Mohammed Yusuf Vs. Faij Mohammad Ors. (2009) 3 SCC 513; and State of Himachal Pradesh Vs. Sada Ram Anr. (2009) 4 SCC 422]. 33.Thus, it is evident that the recording of reasons is principle of natural justice and every judicial order must be supported by reasons recorded in writing. It ensures transparency and fairness in decision making. The person who is adversely affected may know, as why his application has been rejected. 14. Non recording of reasons, non consideration of admissible evidence or consideration of inadmissible evidence renders the order to be unsust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son is an indispensable part of a sound judicial system; reasons at least sufficient to indicate an application of mind to the matter before Court. Another rationale is that the affected party can know why the decision has gone against him. One of the salutary requirements of natural justice is spelling out reasons for the order made; in other words, a speaking-out. The inscrutable face of the sphinx is ordinarily incongruous with a judicial or quasi-judicial performance. 16. Following this very view, the Supreme Court in another judgment in State of Rajasthan v. Rajendra Prasad Jain, (2008)15 SSC 711 stated that 'reason is the heartbeat of every conclusion, and without the same it becomes lifeless. 17. Providing of reasons in orders is of essence in judicial proceedings. Every litigant who approaches the Court with a prayer is entitled to know the reasons for acceptance or rejection of such request. Either of the parties to the lis has a right of appeal and, therefore, it is essential for them to know the considered opinion of the Court or the Tribunal to make the remedy of appeal meaningful. It is the reasoning which ultimately culminat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to Judgment Writing. Describing that some judgments could be complex, in distinction to routine judgments, where one requires deeper thoughts, and the other could be disposed of easily but in either cases, reasons they must have. While speaking about purpose of a judgment, she said, 'The first matter to consider is the purpose of the judgment. To my mind there are four purposes for any judgment that is written:- (1) to clarify your own thoughts; (2) to explain your decision to the parties; (3) to communicate the reasons for the decision to the public; and (4) to provide reasons for an Appellate Court to consider.' 20. Clarity of thought leads to proper reasoning and proper reasoning is the foundation of a just and fair decision. In Alexander Machinery (Dudley) Ltd. v. Crabtree 1974 ICR 120 (NIRC) , the Court went to the extent of observing that 'Failure to give reasons amounts to denial of justice'. Reasons are really linchpin to administration of justice. They are the link between the mind of the decision-taker and the controversy in question. To justify our co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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