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TMI Blog2023 (6) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... of present applications is that the appeals were filed against the orders passed by the Petrol Taxation Officer, Jammu, [hereinafter after referred to as 'the PTO'], whereby the PTO had not accepted the returns filed under the Jammu and Kashmir Motors Spirit & Diesel Oil (Taxation of Sales) Act, 2005, ['the Act of 2005' for short] and had imposed additional tax, interest and penalty. The appeals filed by the applicants/appellants against the assessment orders were rejected by the appellate Authority. Both these orders were challenged by way of appeals before the Tribunal. 03. The PTO vide Order dated 25th July, 2001, disallowed the shortages shown by the applicants in Form P-4 regarding evaporation loss, selling of downgraded HSD as LDO and use of the self-consumption and levied tax as also imposed penalty in terms of Section 5 of the Act of 2005. The applicants assailed the order of PTO before the appellate Authority (Deputy Commissioner, Sales Tax, Appeals), Jammu, and the applicants remained unsuccessful before the appellate Authority. An appeal was filed against the Order dated 31st July, 2003, challenging the order of the appellate Authority in second appeal and the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mination by this Court in STR No. 2/2009 and STR No. 3/2009, and as such, the order dated 16th November, 2018 is required to be read to have been passed in STR No. 2/2009 and STR No. 3/2009. 09. From the bare perusal of record, it appears that simultaneously the applicants have filed two separate applications bearing STR No. 1/2009 titled Hindustan Petroleum Corporation Ltd. vs. J&K Sales Tax Appellate Tribunal and Anr. and STR No. 4/2009, titled Indian Oil Corporation Ltd, vs. J&K Sales Tax Appellate Authority and Anr. before this Court under Section 12 (D) (1) 2nd Proviso of the Jammu and Kashmir Sales Tax Act, as the Tribunal, according to the applicants, has neither referred to nor considered the other questions of law which finds mention in the reference applications filed before the Tribunal. These questions of law by implication shall be deemed to have been refused. 09. The applicants through the medium of STR No. 1/2009 and STR No. 4/2009, have sought consideration of following questions of law by this Court. i. Whether on the facts and circumstances of the case, the Tribunal is justified in law in holding that the assessment completed by the Petrol Taxation Officer on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have already been decided and settled by the Hon'ble Apex Court in case titled Bhopal Sugar Industries Ltd M.P. and Anr. Vs. O.P. Dube, Sales Tax Officer, Bhopal reported in AIR 1964 SC 1037 and regarding STR No. 4/2009 and STR No. 1/2009. The specific stand of the applicants before this Court is that the orders passed by the Tribunal in the aforesaid STRs clearly show that except referring to and discussing the definition of sale to the effect whether self-consumption is sale, the Tribunal is silent regarding other questions of law raised in the reference applications filed by the applicants, the details of which have already been reflected in the preceding paragraphs. 11. The further case set up by the applicants in these applications is that the Tribunal has neither referred to, nor decided the other questions of law and in fact has ignored all the questions raised in the applications, which, according to the applicants, are important questions of law. Arguments on behalf of applicants. 12. Mr. Subash C.Dutta, learned counsel appearing for the applicants, submits that the orders of the Tribunal clearly transpire non-application of mind with respect to the questions which have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in formulating only one question out of eight raised in the reference applications. It goes without saying that reasoning alone, can enable a higher or an appellate court to appreciate the controversy in question in its correct perspective and to hold whether the reasoning recorded by the court whose order is under question is sustainable in the eyes of law and whether it has adopted the correct legal approach. 17. Reliance is being placed on the Judgment passed in case titled Asst. Commissioner v. M/S. Shukla and Brothers reported in (2010) 30 VST 114 (SC), wherein the Hon'ble Apex Court in similar facts and circumstances has remanded the matter back to the High Court with a request to hear the case de-novo and pass appropriate order in accordance with law. The relevant paragraphs of the Judgment, for facility of reference, are reproduced as under:- "20... We are not venturing to comment upon the correctness or otherwise of the contentions of law raised before the High Court in the present petition, but it was certainly expected of the High Court to record some kind of reasons for rejecting the revision petition filed by the Department at the very threshold. A litigant has a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocedure requires that, the Court should record findings on each issue and such findings which obviously should be reasoned would form part of the judgment, which in turn would be the basis for writing a decree of the Court. 22. By practice adopted in all Courts and by virtue of judge made law, the concept of reasoned judgment has become an indispensable part of basic rule of law and, in fact, is a mandatory requirement of the procedural law. Clarity of thoughts leads to clarity of vision and proper reasoning is the foundation of a just and fair decision. In the case of Alexander Machinery (Dudley) Ltd. (supra), there are apt observations in this regard to say "failure to give reasons amounts to denial of justice". Reasons are the real live links to the administration of justice. With respect we will contribute to this view. There is a rationale, logic and purpose behind a reasoned judgment. A reasoned judgment is primarily written to clarify own thoughts; communicate the reasons for the decision to the concerned and to provide and ensure that such reasons can be appropriately considered by the appellate/higher Court. Absence of reasons thus would lead to frustrate the very objec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw. To that extent the appeal is allowed...". 18. In another case titled M/s. Steel Authority of India Ltd vs. Sales Tax Officer, Rourkela-I reported in (2008), 16 VST 181 (SC), the Hon'ble Supreme in paragraphs 9,10 and 11 has held as under:- "9.... A bare reading of the order shows complete non- application of mind. As rightly pointed out by learned counsel for the appellant, this is not the way a statutory appeal is to be disposed of. Various important questions of law were raised. Unfortunately, even they were not dealt by the first appellate authority. 10. Reason is the heartbeat of every conclusion. It introduces clarity in an order and without the same it becomes lifeless. (See Raj Kishore Jha v. State of Bihar 2003 (11) SCC 519) 11. Even in respect of administrative orders Lord Denning, M.R. in Breen v. Amalgamated Engg. Union (1971) 1 All ER 1148, observed: "The giving of reasons is one of the fundamentals of good administration." In Alexander Machinery (Dudley) Ltd. v. Crabtree 1974 ICR 120 (NIRC) it was observed: "Failure to give reasons amounts to denial of justice." "Reasons are live links between the mind of the decision-taker to the controversy in question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oritative pronouncements mentioned supra that reasons must be recorded in a judicial order even when it relates to the non-reference of certain questions raised in the reference applications. The applicants had the right to know that what weighed with the Tribunal in not referring or even discussing the questions raised by the applicants in the applications. 21. The approach adopted by the Hon'ble Supreme Court has been uniform in case of orders passed without any reason, which is, to remand the matter back to the appropriate court and determine whether the questions raised in the reference applications are in fact substantial questions of law or otherwise. Conclusion 22. In the light of peculiar facts and circumstances of the present case coupled with settled legal position, we deem it appropriate to dispose of all the STR's and remand back to the Tribunal to decide and dispose of the reference applications afresh in accordance with law and on its own merits. If the Tribunal is of the opinion that proposed questions of law raised in the reference applications are not substantial questions of law and they are on factual aspects, it will be open for the Tribunal to consider the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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