Reasoned quasi-judicial orders are mandatory; an unreasoned decision was quashed and sent back for reconsideration.

A quasi-judicial authority deciding a sales tax exemption claim must pass a speaking order by recording and communicating reasons, because reasoned decision-making is part of fair procedure and enables scrutiny. An order with no reasons does not comply with natural justice and is unsustainable. On that basis, the impugned appellate order was quashed for want of reasons, and the matter was remanded for reconsideration after giving the petitioner an adequate opportunity of hearing.

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Issues: Whether the order of the Higher Level Screening Committee, being a quasi-judicial order passed without recording reasons, was vitiated for violation of natural justice and liable to be quashed with a direction for fresh consideration.

Analysis: The Committee was required to act quasi-judicially while deciding the claim for sales tax exemption. A quasi-judicial authority must pass a speaking order disclosing reasons in support of its conclusion, because recording and communication of reasons is part of fair procedure and enables effective scrutiny. An order that contains no reasons does not satisfy the principles of natural justice and cannot be sustained.

Conclusion: The impugned appellate order was invalid for want of reasons and was quashed, and the matter was remanded to the Committee for reconsideration after giving the petitioner an adequate opportunity of hearing.

Ratio Decidendi: A quasi-judicial authority must record reasons in support of its decision and communicate them to the affected party; failure to pass a speaking order renders the decision unsustainable for breach of natural justice.

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