Speaking order requirement in refund adjudication: non-reasoned rejection breached natural justice and justified remand.

An adjudication order that rejects refund claims without recording reasons and fails to address the taxpayer's specific objection is unsustainable as a breach of natural justice. The original authority must examine the record and pass a speaking order; the appellate authority cannot cure the defect by introducing new grounds. The impugned order was set aside and the matter remanded to the original authority for fresh consideration, with due opportunity to the appellant and a reasoned decision on a de novo basis.

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Issues: Whether the impugned order, which did not adequately address the appellant's objection that it was not a speaking order, could be sustained, and whether the matter required remand for fresh consideration.

Analysis: The dispute centred on the refusal to accept the refund claims without a reasoned order. It was found that the original authority was required to examine the available records and record reasons, and that the appellate authority could not cure the absence of reasoning by adding new grounds. Since the order under challenge did not properly deal with the appellant's grievance and failed to comply with the requirement of a reasoned decision, the defect amounted to a breach of natural justice.

Conclusion: The impugned order was set aside and the matter was remanded to the original authority for fresh consideration after granting due opportunity and passing a speaking order.

Ratio Decidendi: An adjudication order that fails to give reasons and does not comply with natural justice cannot be sustained, and the proper course is remand for a speaking order on a de novo consideration.

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