Non-application of mind in exemption rejection led to quashing and fresh reconsideration on merits.

An administrative order rejecting exemption under the yarn-packing notifications must reflect consideration of the relevant material and the reasons placed before the authority. Where the record shows no due application of mind to the petitioners' material, the rejection is liable to be quashed. The High Court therefore set aside the impugned orders and remitted the exemption application for a fresh decision on merits after considering both sides' material.

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Issues: Whether the impugned orders rejecting the request for exemption from the yarn-packing notifications were vitiated by non-application of mind and liable to be quashed with a direction for reconsideration.

Analysis: The exemption request was required to be examined on the basis of the material placed before the authority and the reasons furnished by the petitioners. The record showed that the impugned orders did not reflect due consideration of the relevant material and therefore suffered from non-application of mind. In such a situation, the proper course was to set aside the orders and remit the matter for a fresh decision on merits after considering the material of both sides.

Conclusion: The impugned orders were set aside and the exemption application was directed to be decided afresh on merits; the issue was answered in favour of the petitioners.

Ratio Decidendi: An administrative order rejecting exemption must show consideration of the relevant material and reasons; if it does not, the order is liable to be quashed and the matter remitted for fresh determination.

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