Reasoned revisional orders are mandatory when taxpayer rights are affected; a non-speaking order based only on a circular cannot stand.

A revisional order under section 25 of the Maharashtra Value Added Tax Act could not stand because it was non-speaking, relied only on an internal circular, and failed to consider the taxpayer's claim to carry forward transitional credit on the basis of the revised return. A revisional order affecting taxpayer rights must disclose the reasons for exercise of power and address the statutory entitlement raised before the authority. The High Court therefore set aside the order and left the respondents free to proceed afresh in accordance with law after issuing notice and passing a reasoned order.

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Issues: Whether the impugned order passed under section 25 of the Maharashtra Value Added Tax Act, 2002 could be sustained when it was non-speaking and rested solely on an internal circular without dealing with the statutory entitlement to transitional credit.

Analysis: The power under section 25 is in the nature of revisional supervision over orders passed by subordinate authority and may affect the taxpayer's rights. For that reason, the order must disclose the basis for exercise of power and must be self-speaking. The impugned order did not examine whether the petitioner was entitled to carry forward transitional credit on the strength of the revised return and instead proceeded only on Circular No. 35A. Since the challenge under writ jurisdiction was directed against an order lacking reasons, the proper course was to set it aside. The earlier notice under Rule 142(1) of the Central Goods and Services Tax Rules, 2017 was stated to have been abandoned, and the operative proceeding was the notice under Rule 30 of the Maharashtra Value Added Tax Rules, 2005.

Conclusion: The impugned order could not be sustained and was set aside, leaving the respondents free to proceed afresh in accordance with law after issuing notice and passing a reasoned order.

Ratio Decidendi: A revisional order affecting a taxpayer must be a reasoned, self-speaking order and cannot stand when it is founded only on an internal circular without considering the statutory claim raised before the authority.

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