TMI Blog2003 (7) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... inasmuch as it does not contain reasons on which the concerned authority declined the prayer for refund/adjustment of the tax already paid. 3.. In the written statement filed on behalf of respondent Nos. 4 and 5 it has not been controverted that the impugned order does not contain reasons for rejecting the petitioner's prayer for refund/adjustment of the tax already paid. 4.. We have heard learned counsel for the parties and perused the record. It is settled law that every quasi-judicial authority is duty-bound to record reasons for its decision and communicate the same to the affected person. The requirement of recording of reasons and communication thereof has been read as an integral part of the concept of fair procedure. The nece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... power to decide the rights of the parties may stultify the powers of the court simply by not recording reasons in support of their decisions or by refraining from communicating such reasons to the affected person. This is the reason why the courts have insisted on rigorous compliance of the requirement of recording of reasons and communication thereof by every quasijudicial authority. Some of the judicial precedents, which can appropriately be cited to support the above mentioned proposition, are: 1.. Harinagar Sugar Mills Ltd. v. Shyam Sunder Jhunjhunwala AIR 1961 SC 1669; 2.. Bhagat Raja v. Union of India AIR 1967 SC 1606; 3.. Travancore Rayon Ltd. v. Union of India AIR 1971 SC 862; 4.. Mahabir Prasad Santosh Kumar v. State of U. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould enable this Court and 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) minimise 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for recording of reasons is grater in a case where the order is passed at the original stage. The appellate or revisional authority, if it affirms such an order, need not give separate reasons if the appellate or revisional authority agrees with the reasons contained in the order under challenge." 6.. In Testeels Ltd. v. N.M. Desai, Conciliation Officer AIR 1970 Gujarat 1, a Full Bench of the Gujarat High Court has made an extremely lucid enunciation of law on the subject and we can do no better than to extract some of the observations made in that decision. The same are: "The necessity of giving reasons flows as a necessary corollary from the rule of law which constitutes one of the basic principles of the Indian Constitutional set- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment to arbitrariness and caprice. If this requirement is insisted upon, then, they will be subject to judicial scrutiny and correction." 7.. If the facts of the present case are examined in the light of the propositions of law laid down in the aforementioned decisions, we do not find any difficulty in holding that the rejection of the petitioner's prayer for refund/adjustment of tax is vitiated by arbitrariness and violation of the rules of natural justice. A reading of the impugned order leaves no manner of doubt that the Excise and Taxation Commissioner has not given any reason whatsoever for declining the petitioner's prayer for refund/adjustment of the excess tax already paid. In other words, the impugned order is arbitrary and crypt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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