Reasoned appellate orders are mandatory; non-speaking CESTAT decision set aside and matter remitted for fresh consideration.

A non-speaking appellate order cannot constitute valid adjudication because reasons are required to sustain a decision. The SC held that the CESTAT's order allowing the Department's appeal without recording reasons was unsustainable. It set aside the impugned order and remitted the matter to the Tribunal for fresh consideration and a reasoned decision. The dispute was therefore not decided on merits and was returned for proper adjudication in accordance with law.

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Issues: Whether the CESTAT's order allowing the Department's appeal without reasons could be sustained and, if not, whether the matter should be remanded for fresh consideration.

Analysis: An appellate order that disposes of a matter without recording reasons cannot stand as a valid adjudication. Since the CESTAT had allowed the Department's appeal without giving any reasons, the order was unsustainable and required interference. The appropriate course was to set aside the impugned order and remit the matter to the Tribunal for reconsideration and a reasoned decision.

Conclusion: The non-speaking order of the CESTAT was set aside and the matter was remanded to the Tribunal for fresh consideration with reasons.

Final Conclusion: The dispute was not decided on merits and was returned to the Tribunal for a reasoned adjudication.

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