TMI Blog2019 (5) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... dings which may indicate that there has been application of mind and also the consideration of grounds raised in the appeal by the revisionist. In absence of reasons it is difficult to come to a conclusion that there has been any application of mind by the Tribunal and such an order in the opinion of the Court cannot be sustained and deserves to the set aside. Revision allowed. - Trade Tax Revision No. - 287 of 2010 - - - Dated:- 26-4-2019 - Alok Mathur, J. For the Applicant : P. Agrawal For the Opposite Party : C.S.C. ORDER ALOK MATHUR,J. 1. Heard Mr. Pradeep Agarwal, learned counsel for the applicant/revisionist as well as Mr. Sanjay Sareen, learned Additional Chief Standing Counsel for the respondents. 2. By means of the impugned order dated 26.08.2010 passed by the Commercial Tax Tribunal, Bench-1, Lucknow in Appeal No. 37 of 2010 for the assessment year 2004-05 under Section 15 A(1)(a) thereby upholding the penalty imposed upon the applicant by the order dated 30.010.2009 passed by the Joint Commissioner(A)-5, Commercial Tax, Lucknow. 3. The applican ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r dated 26.08.2010 the penalty order has been upheld which has been impugned before this Court. A perusal of the order dated 30.10.2009 passed by the Joint Commissioner(A)-5, Commercial Tax, Lucknow would show that the applicant firm is totally owned and controlled by the Government of India and during the month of April tax of ₹ 40,22,079/- was deposited by the applicant and subsequently an amount of ₹ 28,21,725/- was deposited when the accounts were audited and finalized, this fact has been admitted by the respondents themselves in the said order. The amount of penalty has been imposed only due to the late payment of the tax. 7. A perusal of Section 15 A(1)(a)of the U.P. Trade Tax Act, is reproduced as under:- Section 15-A. Penalties in certain cases . (1) If the assessing authority is satisfied that any dealer or other person- (a) has, without reasonable cause, failed to furnish the return of his turnover or to furnish it within the time allowed and in the manner prescribed, or to deposit the tax due under this Act, before furnishing the return or along with the return as required under the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 15-A of the Act can be levied. The order of Commissioner, Tax Tribunal is on the face of it contrary to the provisions of statute. With regard to giving of reasons it has been consistently held by this Court as well as Hon'ble Apex Court that any order bereft of reasons is arbitrary and is liable to be set aside on this score alone. 10. An order without valid reasons cannot be sustained. To give reasons is the rule of natural justice. Highlighting this rule, Hon'ble Supreme Court held in the case of The Secretary Curator, Victoria Memorial v. Howrah Ganatantrik Nagrik Samity and ors., JT 2010(2)SC 566 para 31 to 33 as under : 31. It is a settled legal proposition that not only administrative but also judicial order must be supported by reasons, recorded in it. Thus, while deciding an issue, the Court is bound to give reasons for its conclusion. It is the duty and obligation on the part of the Court to record reasons while disposing of the case. The hallmark of an order and exercise of judicial power by a judicial forum is to disclose its reasons by itself and giving of reasons has always been insisted upon as one of the fundamentals of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to the lis has a right of further appeal. Unless the litigant is made aware of the reasons which weighed with the court in denying him the relief prayed for, the remedy of appeal will not be meaningful. It is that reasoning, which can be subjected to examination at the higher forums. In State of Orissa Vs. Dhaniram Luhar2 this Court, while reiterating that reason is the heart beat of every conclusion and without the same, it becomes lifeless, observed thus : 8.......Right to reason is an indispensable part of a sound judicial system; reasons at least sufficient to indicate an application of mind to the matter before court. Another rationale is that the affected party can know why the decision has gone against him. One of the salutary requirements of natural justice is spelling out reasons for the order made;....... 12. The Supreme Court in State of Orissa v. Dhaniram Luhar (2004) 5 SCC 568 while dealing with the criminal appeal, insisted that the reasons in support of the decision was a cardinal principle and the High Court should record its reasons while disposing off the matter. The Court held as under: 8. Even in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as absence of reasons. While no reasoning in support of judicial orders is impermissible, the brief reasoning would suffice to meet the ends of justice at least at the interlocutory stages and would render the remedy of appeal purposeful and meaningful. It is a settled canon of legal jurisprudence that the Courts are vested with discretionary powers but such powers are to be exercised judiciously, equitably and in consonance with the settled principles of law. Whether or not, such judicial discretion has been exercised in accordance with the accepted norms, can only be reflected by the reasons recorded in the order impugned before the higher Court. Often it is said that absence of reasoning may ipso facto indicate whimsical exercise of judicial discretion. Patricia Wald, Chief Justice of the D.C. Circuit Court of Appeals in the Article, The problem with the Courts: Black-robed Bureaucracy Or Collegiality Under Challenge 42 Md.L. Rev. 766, 782 (1983), observed as under:- ' My own guiding principle is that virtually every appellate decision requires some statement of reasons. The discipline of writing even a few sentences or paragraphs explaining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der is not only beneficial to the higher courts but is even of great utility for providing public understanding of law and imposing self- discipline in the Judge as their discretion is controlled by well- established norms. The contention raised before us that absence of reasoning in the impugned order would render the order liable to be set aside, particularly, in face of the fact that the learned Judge found merit in the writ petition and issued rule, therefore, needs to be accepted. We have already noticed that orders even at interlocutory stages may not be as detailed as judgments but should be supported by reason howsoever briefly stated. Absence of reasoning is impermissible in judicial pronouncement. 18. Reason is the very life of law. When the reason of a law once ceases, the law itself generally ceases (Wharton's Law Lexicon). Such is the significance of reasoning in any rule of law. Giving reasons furthers the cause of justice as well as avoids uncertainty. As a matter of fact it helps in the observance of law of precedent. Absence of reasons on the contrary essentially introduces an element of uncertainty, dissatisfaction and give entire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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