2014 (2) TMI 1177

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....eal No. E/2711/2007-SM, claiming following substantial questions of law :- "(a)  Whether the learned Tribunal has passed non speaking and cryptic impugned order? (b)     Whether demand can be confirmed merely on the ground of wrong reporting in Balance Sheet? (c)     Whether duty can be demanded in the absence of any evidence of clandestine removal of goods? (d)    Whether demand is barred by limitation? (e)     Whether imposition of 100% penalty is justified? (f)      Whether impugned order is perverse and contrary to the record? 2. A few facts relevant for the decision of the controversy involved, as narrated ....

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....ers at Rs. 11,22,667/- and calculated demand of duty amounting to Rs. 1,79,563/-. Accordingly, show cause notice dated 26-10-2004, Annexure A-3 was issued to the assessee to show cause as to why Central Excise duty along with penalty and interest be not imposed. The assessee filed reply dated 3-11-2004 to the notice inter alia submitting that difference in figure shown in the return and balance sheet was due to wrong posting of balance of RG-1 by accounting section. The goods exported vide invoice dated 28-3-2001 had not been entered in RG-1 at the time of reporting of closing balance to account section. Resultantly, the goods exported vide invoice No. 127 were not considered in balance sheet. The adjudicating authority vide order dated 31-....

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....ing the above discussion, this Court holds : a.       In India the judicial trend has always been to record reasons, even in administrative decisions, if such decisions affect anyone prejudicially. b.      A quasi-judicial authority must record reasons in support of its conclusions. c.       Insistence on recording of reasons is meant to serve the wider principle of justice that justice must not only be done it must also appear to be done as well. d.      Recording of reasons also operates as a valid restraint on any possible arbitrary exercise of judicial and quasi-judicial or even administrative power. e. &nbsp....

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.... impossible to know whether the person deciding is faithful to the doctrine of precedent or to principles of incrementalism. l.        Reasons in support of decisions must be cogent, clear and succinct. A pretence of reasons or 'rubber-stamp reasons' is not to be equated with a valid decision making process. m.     It cannot be doubted that transparency is the sine qua non of restraint on abuse of judicial powers. Transparency in decision making not only makes the judges and decision makers less prone to errors but also makes them subject to broader scrutiny. (See David Shapiro in Defence of Judicial Candor (1987) 100 Harward Law Review 731-737). n.    &nbsp....