1994 (4) TMI 368

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...., 1981 as a new unit. It purchases certain goods from the market. Such goods are used in manufacturing process and are converted into cubes. The cubes are therefore, manufactured out of the iron scrap purchased by the petitioner. By notifications (annexures F-1 and F-2), certain exemptions from the payment of State sales tax and entry tax have been granted to the new industrial unit going into production after April 1, 1981. The procedure for grant of exemption certificate under the aforesaid notification has been prescribed vide letter dated January 12, 1984 (annexure G) issued by respondent No. 1. The aforesaid letter contains the instructions. The petitioner claimed that it has complied with the said instructions and earned the eligibili....

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....iable to be quashed with appropriate directions on the undernoted grounds: (a) The application was required to be disposed of by the District Level Committee and in case an adverse order was passed, the petitioner had further right to approach the State Level Committee. The order is, therefore, in flagrant violation of the scheme of law. (b) The order is violative of the principles of natural justice in that no opportunity of hearing was afforded and further in that the order does not contain any reason as to why, despite compliance of all the instructions the application came to be rejected. (c) The order does not disclose as to on what basis the State Level Committee chose to reject the prayer. 6.. It is noticed from para 11 o....

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....ing of reasons by an administrative authority serves a salutary purpose, namely, it excludes chances of arbitrariness and assures a degree of fairness in the process of decision-making. The said purpose would apply equally to all decisions and its application cannot be confined to decisions which are subject to appeal, revision or judicial review. Therefore, the requirement that reasons be recorded should govern the decisions of an administrative authority exercising quasi-judicial functions irrespective of the fact whether the decision is subject to appeal, revision or judicial review." 10.. In the instant case, the grievance of the petitioner is found to be of substance on the additional ground that a favourable order passed by the Dis....