TaxTMI 
TaxTMI 
1991 (3) TMI 340
X X X X Extracts X X X X
X X X X Extracts X X X X
....ited, Kharigram v. Additional Commissioner, Commercial Taxes, Rajasthan, Jaipur) are taken into consideration. The petitioner is an assessee under the Rajasthan Sales Tax Act, 1954 and is a public company engaged in the business of manufacturing and selling of blended synthetic yarn. For the assessment year 1987-88 (accounting year October 1, 1985 to September 30, 1986), the petitionercompany was assessed by the Commercial Taxes Officer, Special Circle, Bhilwara. The assessment was completed by the Commercial Taxes Officer under section 10(4) of the Rajasthan Sales Tax Act by his order dated June 7, 1990. A demand of Rs. 7,54,093 was created against the petitioner. In pursuance of the assessment order dated June 7, 1990, a demand notice ....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., (annexure 10 dated December 18, 1990, in S.B. Civil Writ Petition No. 654 of 1991: Bhilwara Spinners Limited, Bhilwara v. Additional Commissioner, Commercial Taxes, Rajasthan, Jaipur) passed by the learned Additional Commissioner, Commercial Taxes, Rajasthan, Jaipur, is not a speaking order. According to the learned counsel for the petitioners, as per the provisions of section 11(3) of the Rajasthan Sales Tax Act (hereinafter referred to as "the Act") while rejecting the application for grant of stay, it was incumbent on the part of the Additional Commissioner to record reasons for such rejection. As no reasons have been recorded by the learned Additional Commissioner in rejecting the stay applications filed by the petitioners for the rem....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... Proviso 3 to sub-section (3) of section 11 of the Act provides that the Commissioner or the Deputy Commissioner (Administration) shall, before rejecting an application under the first proviso, give the applicant a reasonable opportunity of being heard and shall, also, record reasons for such rejection. The rule regarding giving an opportunity of hearing to the aggrieved party and the rule requiring giving reasons in support of an order, are the basic principles of natural justice and both these rules should be observed in their proper spirit and mere pretence of compliance with these rules will not satisfy the requirements of the law. It is not in dispute that the petitioners were given an opportunity of hearing and only after hearing ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... they stand and should, also, know what were the reasons, which persuaded the authority to reject their case. According to law, the necessity of recording the reasons is obligatory on the authority as it ensures that the decision is reached according to law and is not the result of caprice, whim or fancy. The condition to give reasons introduces clarity and excludes at any rate and minimises the arbitrariness and it also, enables the appellate or supervisory court to judge the legality and correctness of the orders passed by the lower court on the basis of these reasons and to see whether the orders passed by the learned lower-authority have been passed on sound reasons or on extraneous or irrelevant consideration. Though no particular form....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... leading to an action or course of action: a rationale ground or motive. The learned Additional Commissioner, Commercial Taxes, Rajasthan, Jaipur, while passing order, annexure 9, has merely recorded his conclusion and has not given any reasons, on the basis of which he arrived at this conclusion. The order passed by the learned authority should reveal how the mind is applied to the subject-matter and how the authority came to the conclusion. Merely mentioning that no prima facie case for grant of stay is made out, does not satisfy the requirement of "recording the reasons", as the rule regarding recording the reasons must be expected to be observed in its proper spirit and should not be a mere pretence of compliance. The order passed by th....