TaxTMI 
TaxTMI 
2008 (10) TMI 93
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....Director and a consolidated order was passed. Being aggrieved by the direction contained in the order of the Tribunal whereby the penalty imposed upon the Director has been set aside, the Revenue has come before us in appeal against this part of the order of the Tribunal. 2. The following substantial question of law has been proposed by the Revenue: (a) Whether, in the facts and circumstances of the case, the Tribunal is justified in setting aside the penalty on the Director under Rule 209A presently Rule 26 of the Central Excise Rules, 2002? 3. However, we make it clear that for reasons recorded hereunder, we do not intend to enter into the merits of the appeal and, therefore, we refrain from answering the proposed question. Instead, w....
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.... been imposed upon the director. 2. Inasmuch as, a part amount of duty was deposited by the appellant, I reduce the penalty under Section 11AC to Rs.25,000/- and under Rule-25 to Rs.25,000/-. Penalty on the Director is set aside. Appeal is disposed off in the above terms. (Pronounced in Court) Sd/- (Archana Wadhwa) Member (Judicial)" 7. So far as the present appeal is concerned, it challenges the setting aside of penalty imposed upon the Director. As is amply clear from a perusal of the above-quoted impugned order, the penalty imposed upon the Director is dealt with in a single, cryptic sentence of the Tribunal which reads, "penalty on the Director is set aside". This is the only sentence in the order which is relevant for the purpos....
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....ial, quasi-judicial and administrative authorities when exercising jurisdiction is imperative, in order to avoid any element of arbitrariness or unfairness which may attach to unreasoned conclusions. The Tribunal is a quasi-judicial forum and while deciding matters, it has to bear in mind that a speaking order is required to be passed as it is adjudicating upon the Order-in-Appeal made by the Commissioner (Appeals) in which the Order-in-Original has merged. As the order made by the Tribunal is an appealable one, it should be ensured that it is founded on cogent reasons. The reasons contained in an order may not be lengthy or elaborate but, at the same time, they must reflect proper application of mind and an understanding of the pros and co....
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....tate, oblivious to Article 141 of the Constitution of India, 1950 (in short the `Constitution'). 8. Reason is the heartbeat of every conclusion, and without the same it becomes lifeless. (See Raj Kishore Jha v. State of Bihar and Ors. [JT 2003 (Suppl.2) SC 354]). 9. Even in respect of administrative orders, Lord Denning M.R. in Breen v. Amalgamated Engineering Union [1971(1) All ER 1148] observed "The giving of reasons is one of the fundamentals of good administration". In Alexander Machinery (Dudley) Ltd. v. Crabtree [1974 ICR 120] (NIRC) it was observed: "Failure to give reasons amounts to denial of justice". Reasons are live links between the mind of the decision-taker to the controversy in question and the decision or conclusion arriv....
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....t CEGAT pass an elaborate order, but at the same time the body of the order must reflect that CEGAT is aware of the aforestated legal position and the order, when read as a whole, must reflect application of mind. It is for this purpose that reasons are required to be assigned, howsoever brief they may be." In Special Civil Application No.22931 of 2005 Shree Devkrupa Ship Breaking v. Union of India decided on 30.11.2005, this Court held that: "6. It is thus apparent on plain perusal of the impugned order that CESTAT, which is the final fact finding authority, ought to have taken due care and shown greater consideration to the case than is shown by the order under challenge. As laid down by the Apex Court in the case of Standard Radiators ....
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.... by CESTAT in absence of any reason in the order made by CESTAT. For this reason also the impugned order cannot be permitted to stand." The above are just a few extracts from relevant judgments elaborating upon the settled legal position which is no longer res integra. No doubt, there are a catena of judgments stating the necessity of passing reasoned orders. 12. Tested upon the anvil of the aforesaid legal position, the impugned order fails to satisfy the requirements of law. Not only is the impugned order devoid of any reasons, it is also silent with regard to the facts of the case as well as the contentions raised by both sides, which may have had a bearing upon the conclusion arrived at by the Tribunal. The findings arrived at by the....