TaxTMI 
TaxTMI 
1988 (2) TMI 455
X X X X Extracts X X X X
X X X X Extracts X X X X
....assessment order, the assessee filed an appeal before the Assistant Commissioner (Judicial), Sales Tax. During the pendency of the said appeal, initially the assessee moved an application under clause (ii) of the proviso attached to section 9(3-A) of the Act. This provision empowers the first appellate authority for special and adequate reasons to be recorded in writing to waive or relax the requirement of the payment regarding one-third amount of the disputed amount of tax, required to be deposited under clause (i) of the aforesaid proviso, before an application for stay could be entertained. The plea taken was that the assessee-firm had been closed and the erstwhile partners are not in such financial position to pay even 113rd of the disp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mmissioner, how could the assessee be expected and required to deposit 40 per cent of the disputed amount, which was a much larger amount. In other words, relaxation given by one hand could not be permitted to be taken away by another hand, by the Assistant Commissioner (judicial), but the Sales Tax Tribunal failed to consider this aspect of the matter, in deciding the assessee's appeal. Now, it is not disputed that the Tribunal while considering the assessee's appeal against the partial stay given by the Assistant Commissioner (Judicial), Sales Tax was discharging its function as an appellate authority and was acting as a quasi-judicial authority. The order passed by the Tribunal is subject to scrutiny by the High Court as a revision is....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... for the decision that deprives him of his statutory right. The duty to give reasons is a safety-valve against arbitrary exercise or the discretionary power. In Siemens Engineering and Manufacturing Co. of India Ltd. v. Union of India AIR 1976 SC 1785, the Supreme Court dealing with this question observed: "It is now settled law that where an authority makes an order in exercise of a quasi-judicial function, it must record its reasons in support of the order it makes. Every quasi-judicial order must be supported by reasons.................. The rule requiring reasons to be given in support of an order is, like the principle of audi alteram partem, a basic principle of natural justice which must inform every quasi-judicial process and thi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecision in appeal is right or wrong. In many cases, this investment of time and industry will be saved if reasons are given in support of the conclusions." It must be clarified at this stage that I am not suggesting that very detailed reasons are required to be given while dealing with an appeal against the stay matter, but all that is necessary, is that reasons appropriate to the contrary should be recorded, a laconic order unsupported by reasons or on irrelevant considerations, cannot be upheld. *Here italicised. A perusal of the order under revision passed by the Tribunal clearly indicates that it disposed of the assessee's appeal in a perfunctory manner and without dealing with the merits of the assessee's claim. In making ....