Reasoned orders and natural justice govern rejection of sales tax refund claims; cryptic refusal is vulnerable to writ challenge.

A quasi-judicial authority must give reasons for rejecting a refund or adjustment claim of excess sales tax, and must communicate those reasons to the affected party. Recording reasons is part of fair procedure, promotes transparency, restrains arbitrariness, and permits effective judicial review. An order that merely rejects the claim without supporting reasons is not a speaking order and is vulnerable to challenge under writ jurisdiction. The rejection order was therefore treated as arbitrary, cryptic, and contrary to natural justice, and the matter required fresh consideration through a speaking order.

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Issues: Whether an order rejecting refund or adjustment of excess sales tax, without recording reasons, was liable to be quashed for violation of natural justice and arbitrariness.

Analysis: A quasi-judicial authority is required to record reasons in support of its decision and communicate them to the affected party. Recording reasons is an integral part of fair procedure, ensures transparency, curbs arbitrariness, and enables effective judicial review by superior courts. An order that merely rejects a claim without any supporting reasons cannot be treated as a speaking order and is vulnerable to challenge under the writ jurisdiction.

Conclusion: The impugned rejection order was arbitrary, cryptic, and in breach of the rules of natural justice. It was liable to be quashed, and the matter required fresh consideration by passing a speaking order.

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