TaxTMI 
TaxTMI 
2019 (5) TMI 910
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.... procuring food grains at the notified prices, providing buffer stocks of food grains and essential commodities and acts as an agency of the Union of India. It works under the instructions of the Government of India issued from time to time on "No Profit and no loss basis". It has further been submitted that the procurement and distribution of food grains is regulated by various control orders as well as orders and directions of the Union of India and State of U.P. The food grains are also collected under the various orders passed under the Essential Commodities Act and under the levy procurement scheme of the "Price Support Scheme" The F.C.I. is thus entrusted interalia with the duty of collection of food grains for and on behalf of the State of U.P. and for storing the same for the Central Pool. 4. That during the course of assessment proceedings a finding was recorded that the applicant had deposited certain tax beyond time and as such an interest of Rs. 1,49,158/- was imposed vide order dated 23.03.2007. The amount of interest was paid by the applicant on on 03.01.2008 and subsequently by means of order dated 10.07.2009 penalty was imposed under Section 15-A(1)(a) amounting ....
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..... A perusal of the facts as stated in the present writ petition that petitioner had paid the part of the amount of tax and the remaining amount was paid beyond the due date on which the interest has been deposited by the assessee. It has also been submitted that the delayed payment of the tax was on account of the finalization of the accounts of the assessee and therefore there is a reasonable cause which has been stated by them for delayed payment of the tax, the said fact has not been disputed by the State." 8. In light of the aforesaid it is clear that there is no intention of the assessee to evade payment of the tax and therefore, as per provisions of Section 15 A(1)(a) of the U.P. Trade Tax Act, the imposition of penalty is illegal and arbitrary. Another aspect of the matter which has been urged by the learned counsel for the applicant is that tribunal has not given any reasons or findings for imposition of penalty and has not been considered in view of the submissions made by applicant before the Tribunal. 9. According to Section 15-A of the U.P. Trade Tax Act, penalty can be imposed only when the assessee has not deposited the amount of tax without any reasonable cause....
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.... know about the manner and quality of exercise undertaken, as also the fact that the Court concerned had really applied its mind. " [Vide State of Orissa Vs. Dhaniram Luhar (JT 2004(2) SC 172 and State of Rajasthan Vs. Sohan Lal & Ors. JT 2004 (5) SCC 338:2004 (5) SCC 573]. 32. Reason is the heartbeat of every conclusion. It introduces clarity in an order and without the same, it becomes lifeless. Reasons substitute subjectivity by objectivity. Absence of reasons renders the order indefensible/unsustainable particularly when the order is subject to further challenge before a higher forum. [Vide Raj Kishore Jha Vs. State of Bihar & Ors. AIR 2003 SC 4664; Vishnu Dev Sharma Vs. State of Uttar Pradesh & Ors. (2008) 3 SCC 172; Steel Authority of India Ltd. Vs. Sales Tax Officer, Rourkela I Circle & Ors. (2008) 9 SCC 407; State of Uttaranchal & Anr. Vs. Sunil Kumar Singh Negi AIR 2008 SC 2026; U.P.S.R.T.C. Vs. Jagdish Prasad Gupta AIR 2009 SC 2328; Ram Phal Vs. State of Haryana & Ors. (2009) 3 SCC 258; Mohammed Yusuf Vs. Faij Mohammad & Ors. (2009) 3 SCC 513; and State of Himachal Pradesh Vs. Sada Ram & Anr. (2009) 4 SCC 422]. 33.Thus, it is evident that the recording o....
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....t." Reasons substitute subjectivity by objectivity. The emphasis on recording reasons is that if the decision reveals the "inscrutable face of the sphinx", it can, by its silence, render it virtually impossible for the Courts to perform their appellate function or exercise the power of judicial review in adjudging the validity of the decision. Right to reason is an indispensable part of a sound judicial system; reasons at least sufficient to indicate an application of mind to the matter before Court. Another rationale is that the affected party can know why the decision has gone against him. One of the salutary requirements of natural justice is spelling out reasons for the order made; in other words, a speaking-out. The "inscrutable face of the sphinx" is ordinarily incongruous with a judicial or quasi-judicial performance." 13. Following this very view, the Supreme Court in another very recent judgment delivered on 22-2-2008, in State of Rajasthan v. Rajendra Prasad Jain, (2008)15 SSC 711 stated that 'reason is the heartbeat of every conclusion, and without the same it becomes lifeless.' 14. Providing of reasons in orders is of essence in judicial proceedin....
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....sions is obligation of the Court and to know the reasons for rejection of its contention is a legitimate expectation on the part of the litigant. 16. It will be useful to refer words of Justice Roslyn Atkinson, Supreme Court of Queensland, at AIJA Conference at Brisbane on 13- 9-2002 in relation to Judgment Writing. Describing that some judgment could be complex, in distinction to routine judgments, where one requires deeper thoughts, and the other could be disposed of easily but in either cases, reasons they must have. While speaking about purpose of the judgment, he said, 'The first matter to consider is the purpose of the judgment. To my mind there are four purposes for any judgment that is written:- (1) to clarify your own thoughts; (2) to explain your decision to the parties; (3) to communicate the reasons for the decision to the public; and (4) to provide reasons for an appeal Court to consider.' 17. Clarity of thought leads to proper reasoning and proper reasoning is the foundation of a just and fair decision. In Alexander Machinery (Dudley) Ltd. v. Crabtree 1974 ICR 120 (NIRC), the Court went to the extent of observing that 'Fail....