Unreasoned rejection of eligibility certificate claim breached natural justice and could not be sustained as time-barred.

Rejection of an application for an eligibility certificate was held invalid where the screening committees recorded only bald conclusions and gave no reasons. The absence of reasons showed no application of mind to the contention that the goods manufactured were exempt from sales tax for the relevant period, and the applicant was not told why the claim was declined. Such an unreasoned rejection breached the principles of natural justice and could not be sustained merely by describing the claim as time-barred.

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Issues: Whether the rejection of the application for grant of eligibility certificate was valid when the orders rejecting it were unreasoned and whether such rejection could be sustained as time-barred.

Analysis: The application was rejected by the screening committees by recording only bald conclusions without disclosing reasons. The absence of reasons meant that the petitioner was not told why its claim for eligibility certificate was declined, and the orders did not show application of mind to the contention that the goods manufactured by the petitioner were exempted from sales tax for the relevant period. A rejection that is unsupported by reasons is vitiated for breach of the principles of natural justice, even if the authorities describe the claim as time-barred.

Conclusion: The rejection orders were invalid for violation of the principles of natural justice and could not be sustained.

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