Mahabir Prasad Kedia Prop Of M/S. Sanjaycasting And Eng. Co. vs. Union Of INDIA And Ors.
Original PDF →Facts
The petitioner, Shri Mahabir Prasad Kedia, filed a writ petition under Article 226 of the Constitution of India challenging an order dated November 9, 2020, passed by the appellate authority under the State Goods and Services Tax Act, 2017. The petitioner contended that the appellate authority's order, which was passed after recording submissions from both the assessee and the authorized officer, failed to provide any reasons for its conclusion. The petitioner argued that this lack of reasoning violated the principles of natural justice. The State was represented by the learned Additional Advocate General.
Held
The Court held that a complete lack of reasons in an order passed by an appellate authority amounts to a violation of the principles of natural justice. The Court observed that while brevity is a virtue, the complete absence of reasoning cannot be permitted. Therefore, the order passed by the appellate authority dated November 9, 2020, was quashed and set aside. The Court directed the appellate authority to decide the matter expeditiously and in accordance with the law. The writ petition was disposed of on this basis.
Key Issues
1. Whether the order passed by the appellate authority under the State Goods and Services Tax Act, 2017, dated November 9, 2020, is liable to be quashed and set aside for want of reasons, thereby violating the principles of natural justice, as contended by the petitioner? The petitioner argued that the appellate authority's order, despite hearing both parties, contained a conclusion without any supporting reasons. This omission, the petitioner contended, amounted to a violation of the fundamental principles of natural justice, rendering the order invalid. The State, represented by the learned Additional Advocate General, did not record any specific arguments against the petitioner's contention regarding the lack of reasons in the judgment.
AI-generated summary — verify with the full judgment below
2021 ss W.P.A. 3103 of 2021 Shri Mahabir Prasad Kedia Vs. Union of India & ors. Mr. Arijit Chakrabarti Mr. Nilotpal Chowdhury Mr. Prabir Bera … for the Petitioner Mr. Abhratosh Majumdar, Ld. A.A.G. Mr. Soumitra Mukherjee Mr. Debasish Ghosh
… for the State This is an application under Article 226 of the Constitution of India wherein the writ petitioner is aggrieved by an order dated November 9, 2020 passed by the appellate authority under the State Goods and Services Tax Act, 2017. Upon a bare perusal of the order, it appears that after recording the submissions of the assessee and the authorised officer, a conclusion has been made by the authority without providing any reasons for the said conclusion. Brevity is a virtue. However, complete lack of reasons cannot be allowed as the same amounts to violation of principles of natural justice. In light of the above reasons, the order passed by the appellate authority is quashed and set aside with a direction upon the appellate authority to decide the matter expeditiously in accordance with law.
2 This writ petition is, accordingly, disposed of. Since no affidavit-in-opposition is called for, allegations made in the writ petition are deemed not to have been admitted. All parties are to act on website copy of this order.
(Shekhar B. Saraf, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.