TMI Blog2009 (8) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... 62,26,011/-. Based on the inspection made on 06.03.2003, the first respondent passed a best of judgment order under Section 12(2) of the Act by determining the total and taxable turnover of ₹ 1,14,50,559. 3. The petitioner submits that the assessing authority has not deducted the discount of ₹ 3,66,614/- given by the cement companies which are clearly recorded at page 255 of the ledger. Further, he alleges that instead of assessing only at 1% as per the notification issued by the Commissioner of Commercial Taxes (CT), Chennai, in Lr.No.K.Dis Act Cell 1/17623/04, dated 08.04.2004, the Assessing officer has wrongly assessed the sale turnover as per Section 3 (2-A) of the Act and passed the best of judgment order, which is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants have a valid and proper explanation for alleged discrepancies and it has not been proved there has been suppressions of sales with intention to evade tax. The levy of penalty is not warranted. 5. The learned counsel for the petitioner would submit that the Committee did not take into consideration the relevant factual details which had been raised to show that the provisions of the Act and Rules are not attracted and that itself would amount to violations of principles of natural justice. 6. The learned counsel for the petitioner in support of his contention placed reliance upon an order passed by this Court in W.P.Nos.34709 to 34712 of 2007, wherein this Court disposed of the said Writ Petition and remanded the matter t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns made by either parties and perused the materials available on record. 9. Before going into the factual matrix of the matter, it is relevant to extract Section 16(D)(2) of the Act for the purpose of deciding this case. 16.D.1....... (2) Notwithstanding anything contained in this Act, the Special Committee may, of its own motion or on application, call for and examine the records of the assessing authority in respect of any proceeding or order under sub-section (2) or (3) of Section 12 or sub-section (1) or (2) of Section 16, if such proceeding or order is passed in violation of the provisions of the Act or rules made thereunder or without following the principles of natural justice, set aside the said proceeding or order and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout reasons itself would be in violation of the principles of natural justice. In the case of Muhurjee's case reported in S.N. Mukherjee v. Union of India, (1990) 4 SCC 594, the Hon'ble Supreme Court held in paragraph Nos:35,38 and 39, are as follows:- 35. Reasons, when recorded by an administrative authority in an order passed by it while exercising quasi-judicial functions, would no doubt facilitate the exercise of its jurisdiction by the appellate or supervisory authority. But the other considerations, referred to above, which have also weighed with this Court in holding that an administrative authority must record reasons for its decision, are of no less significance. These considerations show that the recording of reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ministrative authority exercising quasi-judicial functions achieves this object by excluding chances of arbitrariness and ensuring a degree of fairness in the process of decision-making. Keeping in view the expanding horizon of the principles of natural justice, we are of the opinion, that the requirement to record reason can be regarded as one of the principles of natural justice which govern exercise of power by administrative authorities. The rules of natural justice are not embodied rules. The extent of their application depends upon the particular statutory framework whereunder jurisdiction has been conferred on the administrative authority. With regard to the exercise of a particular power by an administrative authority including exer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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