Reasoned tribunal orders are essential where manufacturing classification depends on applying precedent to present facts.

An order of the Tribunal classifying an activity as manufacturing cannot stand where it merely relies on an earlier precedent without showing application of mind to the facts of the present case. Reasons are the live link between the controversy and the conclusion, especially when the order is open to further challenge, and the Tribunal must briefly but clearly state how the facts are covered by the cited decision. The impugned order was set aside and the matter was remanded for de novo consideration.

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Issues: Whether the order of the Tribunal, which held the assessee's activity to be manufacturing by relying on an earlier decision, could be sustained despite the absence of reasons showing application of mind, and whether the matter required remand for fresh consideration.

Analysis: The Tribunal's conclusion was found to be unsupported by reasons indicating how the facts of the present case were squarely covered by the earlier precedent. Reasons are required as the live link between the controversy and the conclusion reached, particularly where the order is amenable to further challenge. The Tribunal was required to briefly but clearly set out the basis for its conclusion.

Conclusion: The impugned order was set aside and the matter was remanded to the Tribunal for de novo consideration.

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