AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 319
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....-2022 by the Additional Commissioner State Tax (Appeal), Dhanbad Division, Dhanbad (Annexure-5 & 5/1 respectively) pertaining to the period 2020-21 wherein appeal of the petitioner challenging the adjudication order No. 83/2021-22 dated 22.02.2022 passed by Respondent No. 6 has been rejected without granting proper opportunity of hearing to petitioner and without entering into merit of the case; (ii) For issuance of further appropriate writ/order/direction, for quashing/setting aside the adjudication order No. 83/2021-22 dated 22.02.2022 passed under Section 74 of the Jharkhand Goods and Service Tax Act, 2017 (hereinafter referred as JGST Act, 2017 for short) and consequential summary of order as contained in Form GST DRC-07 dated 22.02.2022 pertaining to the period 2020-21 (Annexure-3 & 3/1 respectively) both passed by the Respondent No. 6, wherein liability of tax, interest and penalty has been fastened upon the Petitioner in utter violation of principles of natural justice as well as in utter violation of provisions contained under Section 73/74 and 75 of the JGST Act; (iii) For issuance of an appropriate writ/order/direction including Writ of declaration, declaring that the....
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.... 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) Reasons reassure that discretion has been exercised by the decision maker on relevant grounds and by disregarding extraneous considerations. (f) Reasons have virtually become as indispensable a component of a decision making process as observing principles of natural justice by judicial, quasi-judicial and even by administrative bodies. (g) Reasons facilitate the process of judicial review by superior Courts. (h) The ongoing judicial trend in all countries committed to rule of law and constitutional governance is in favour of reasoned decisions based on relevant facts. This is virtually the life blood of judicial decision making justifying the principle that reason is the soul of justice. (i) Judicial or even quasi-judicial opinions these days can be as different as the judges and authoriti....
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.... by reason, is arbitrary. The rule of law contemplates governance by laws and not by humour, whims or caprices of the men to whom the governance is entrusted for the time being. It is the trite law that 'be you ever so high, the laws are above you'. This is what men in power must remember, always." 40. In LIC Vs. Consumer Education and Research Centre (1995) 5 SCC 482 this Court observed that the State or its instrumentality must not take any irrelevant or irrational factor into consideration or appear arbitrary in its decision. "Duty to act fairly" is part of fair procedure envisaged under Articles 14 and 21. Every activity of the public authority or those under public duty must be received and guided by the public interest. A similar view has been reiterated by this Court in Union of India Vs. Mohan Lal Capoor (1973) 2 SCC 836 and Mahesh Chandra Vs. U.P. Financial Corpn.(1993) 2 SCC 279. 41. In State of W.B. Vs. Atul Krishna Shaw 1991 Supp (1) SCC 414, this Court observed that : (SCC p. 421, para 7) "7....Giving of reasons is an essential element of administration of justice. A right to reason is, therefore, an indispensable part of sound system of judicial review." 42. ....
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....s the only indication to know about the manner and quality of exercise undertaken, as also the fact that the court concerned had really applied its mind'. The reason is the heartbeat of every conclusion. It introduces clarity in an order and without the same, the order becomes lifeless. Reasons substitute subjectivity with objectivity. The absence of reasons renders an order indefensible/unsustainable particularly when the order is subject to further challenge before the higher forum. Recording of reasons is the principle of natural justice and every judicial order must be supported by reasons recorded in writing. It ensures transparency and fairness in decision making. The person who is adversely affected must know why his application has been rejected." 45. In Institute of Chartered Accountants of India Vs. L.K. Ratna (1986) 4 SCC 537, this Court held that on charge of misconduct the authority holding the inquiry must record reasons for reaching its conclusion and record clear findings. The Court further held: (SCC p. 558, para 30). "30.....In fairness and justice, the member is entitled to know why he has been found guilty. The case can be so serious that it can attract t....
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....tion of the High Courts under Article 227 of the Constitution and that the reasons, if recorded, would enable this Court or the High Courts to effectively exercise the appellate or supervisory power. But this is not the sole consideration. The other considerations which have also weighed with the Court in taking this view are that the requirement of recording reasons would (i) guarantee consideration by the authority; (ii) introduce clarity in the decisions; and (iii) minimize chances of arbitrariness in decision making. In this regard a distinction has been drawn between ordinary Courts of law and tribunals and authorities exercising judicial functions on the ground that a Judge is trained to look at things objectively uninfluenced by considerations of policy or expediency whereas an executive officer generally looks at things from the standpoint of policy and expediency. Reasons, when recorded by an administrative authority in an order passed by it while exercising quasi-judicial functions, would no doubt facilitate the exercise of its jurisdiction by the appellate or supervisory authority. But the other considerations, referred to above, which have also weighed with t....