TaxTMI 
TaxTMI 
Good times have started for the taxpayers through GSTAT.
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....ood times have started for the taxpayers through GSTAT.<br>By: - K Balasubramanian<br>Goods and Services Tax - GST<br>Dated:- 7-10-2026<br>This writeup is on a recent order passed by the Raipur bench of the GSTAT on 24/09/2026 in the matter of Cheema Trading Company Versus Commissioner State GST. - 2026 (9) TMI 2055 - GSTAT RAIPUR. The reference made by the GSTAT bench to the decision of Apex Court in the matter of Kranti Associates is worth sharing with all the readers as these vital principles/ guidelines are squarely applicable to each and every adjudication order passed under GST irrespective of applied section being 73, 74 or 74A as the case may be. Let is quickly go to these suggestions first: In India the judicial trend ha....
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....s always been to record reasons, even in administrative decisions, if such decisions affect anyone prejudicially. 1. A quasi-judicial authority must record reasons in support of its conclusions. 2. 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. 3. Recording of reasons also operates as a valid restraint on any possible arbitrary exercise of judicial and quasi-judicial or even administrative power. 4. Reasons reassure that discretion has been exercised by the decision maker on relevant grounds and by disregarding extraneous considerations. 5. Reasons have virtually become as indispensable a component of a decision-mak....
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....ing process as observing principles of natural justice by judicial, quasi-judicial and even by administrative bodies. 6. Reasons facilitate the process of judicial review by superior Courts. 7. 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. 8. Judicial or even quasi-judicial opinions these days can be as different as the judges and authorities who deliver them. All these decisions serve one common purpose which is to demonstrate by reason that the relevant factors have been objectively considered. This....
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.... is important for sustaining the litigants' faith in the justice delivery system. 9. Insistence on reason is a requirement for both judicial accountability and transparency. 10. If a Judge or a quasi-judicial authority is not candid enough about his/her decision making process then it is impossible to know whether the person deciding is faithful to the doctrine of precedent or to principles of incrementalism. 11. 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. 12. It cannot be doubted that transparency is the sine qua non of restraint on abuse of judicial powers. Transparency in decision making n....
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....ot 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). 13. Since the requirement to record reasons emanates from the broad doctrine of fairness in decision making, the said requirement is now virtually a component of human rights and was considered part of Strasbourg Jurisprudence. See (1994) 19 EHRR 553, at 562 para 29 and Anya vs. University of Oxford, 2001 EWCA Civ 405, wherein the Court referred to Article 6 of European Convention of Human Rights which requires, "adequate and intelligent reasons must be given for judicial decisions". 14. In all common law jurisdictions judgments play ....
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....a vital role in setting up precedents for the future. Therefore, for development of law, requirement of giving reasons for the decision is of the essence and is virtually a part of "Due Process". 15. In this regard SN. Mukherjee Versus Union Of India - 1990 (8) TMI 345 - Supreme Court five judge bench and BASUDEV DUTTA Versus THE STATE OF WEST BENGAL & ORS. - 2024 (12) TMI 1715 - Supreme Court both or judgements of Hon'ble Apex Court are also relevant. East Coast Railway & Anr. Versus Mahadev Appa Rao & Ors. - 2010 (7) TMI 967 - Supreme Court And M/s. Pacific International Private Limited Versus Commissioner (Appeal) Goods and Service Tax, Central Excise & Customs Bhubaneswar, ommissioner, GST & Central Excise Ro....
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....urkela Commissionerate, Deputy Commissioner Goods and Service Tax & Central Excise Rourkela, Assistant Commissioner of Central Tax Goods and Service Tax & Central Excise Commissionerate - 2025 (5) TMI 1533 - ORISSA HIGH COURT, produced by the learned advocates of appellants are also useful in this point. The Story: Section 74 was invoked and demand was confirmed in OIO. The taxpayer preferred the first appeal which was simply rejected without any modifications or reduction in tax liability. The taxpayer filed appeal before GSTAT under section 112. The bench held that both OIO as well as OIA are set aside and matter is remanded to original adjudicating authority for fresh consideration. It is most important that while the order is be....
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....ing adjudicated as per the GSTAT order, the adjudication officer is bound to follow all the guidelines referred by the bench and it shall not be a circle of second round of first as well as second appeal. The adjudication order itself must be final with no scope for any relief at appeal level. Conclusion: It is heartening to note that GSTAT has created confidence on the taxpayer and within just five days of October, 2026, 1000 appeals have already been filed in GSTAT. The order as the one above from Raipur bench shall have huge effect on the adjudication process itself as the taxpayer may be aware now on all the requirements during adjudication as detailed above. Undoubtedly, by end of the year 2026, we shall have absolute clarity on sev....
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....eral matters through various judgments and we may get fresh OIO on different debatable issues in future as it is not possible to continue the old method now. Taxpayers as well as tax professionals may refer the above case law of GSTAT bench in all the first appeals in future, wherever there is any shortcoming in OIO. =============<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....