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2024 (5) TMI 1038 - ALLAHABAD HIGH COURTViolation of principles of natural justice - Non-speaking order by the adjudicating authority - replies have been ignored - application of rate of tax on the commodities dealt with by the petitioner - HELD THAT:- The impugned order is wholly non-speaking both with respect to rejection of the explanation furnished by the petitioner and also with respect to application of rate of tax on the commodities dealt with by the petitioner. No discussion exists in the impugned order to consider any of the materials relied upon by the petitioner. Such approach adopted by the adjudicating authority is unacceptable. Once explanation was furnished to the show cause notice, irrespective of its worthiness in the eyes of the adjudicating authority, it remained obligated in law to deal with the same by affording adequate reasons. Merely describing a claim as unacceptable or false or rejected would not fulfill the requirements of a proper adjudication proceeding. The reason to reach such conclusion is the essence of fairness of an adjudication proceeding. Unless such reasons are given in black and white, the adjudication order may remain laconic. Second, assuming for the sake of submission that the adjudicating authority had chosen to reject the explanation submitted by the petitioner and such rejection may have been valid, another fatal error has been committed in the adjudication proceedings, insofar as no reason had been assigned by the adjudicating authority in taxing the turn over on best judgement basis - the adjudicating authority has not assigned any reason to submit such turnover at the highest rate of tax i.e. @ 28%. In doing that he has acted unmindful of the fact that it was the further claim of the petitioner arising from the same books of accounts and that part of turnover was exempt. In the present case, the petitioner was not at fault for the delay in the proceedings. The notice was issued late. The petitioner responded in writing and submitted his application. That has been rejected without assigning any reasons. The adjudication order is clearly laconic - even if the petitioner was relegated to the forum of the appeal, irrespective of the fate in that appeal, the petitioner may never have any opportunity before the adjudicating authority. Therefore, that layer of the proceeding would remain practically ex parte against the petitioner to the extent his replies would remain from being considered by the adjudicating authority. The matter is remitted to the adjudicating authority to pass a fresh reasoned order as expeditiously as possible preferably within a period of three months after hearing the petitioner - The writ petition is allowed by way of remand.
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