2003 (12) TMI 76 - HC - Central Excise

Summary

Issues:
- Appeal against an order passed by respondent No. 2 under Section 35A(iv) of the Central Excise Act, 1944.
- Lack of reasons in the impugned order by the appellate authority.
- Non-application of mind leading to the appeal being quashed and remanded.

Analysis:
1. The petitioner challenged an order dated 3-7-2003 passed by respondent No. 2, the appellate authority, under Section 35A(iv) of the Central Excise Act, 1944. The petitioner argued that the impugned order lacked legal validity as respondent No. 2 failed to provide any reasons for setting aside the challenged order. According to the petitioner's advocate, the absence of reasons indicated a lack of application of mind, violating the statutory requirement for decision-making under the Act.

2. The respondents, represented by the Senior Central Government Standing Counsel, contended that the reasons for the decision were embedded within the submissions made by one of the parties during the proceedings. However, upon examination of the impugned order, the court observed that the appellate authority had indeed not recorded any reasons as mandated by Section 35-A(iv) of the Act. The court emphasized the importance of reasons in administrative and quasi-judicial decisions to ensure transparency, accountability, and the ability for higher authorities to review the decision-making process.

3. Consequently, the court decided to quash and set aside the impugned order dated 3-7-2002 due to the absence of reasons provided by respondent No. 2. The matter was remanded back to respondent No. 2 for fresh consideration. The court clarified that its decision did not delve into the merits of the appeal, leaving it open for the concerned parties to present their arguments again. The court directed respondent No. 2 to ensure that reasons for the decision were properly documented in the revised order. Ultimately, the petition was allowed, and the rule was made absolute without any order as to costs.