Stovekraft Pvt. Ltd. vs The Additional Commissioner of Commercial Taxes Zone II

Jayant M. Patel, J.—1. The appeals are admitted. Mr. T.K. Vedamurthy, learned Government Pleader appears for the respondent and waives notice of admission and with the consent of learned Advocate appearing for both sides, the appeals are finally heard.

The present appeals are directed against the Order dated 30.11.2015 passed by the Additional Commissioner of Commercial Taxes, [Zone]-II, Bangalore [hereinafter referred to as ''Commissioner'' for the sake of convenience], whereby the Order of the First Appellate Authority is set aside and the CTO [Audit] - 2.3, DVO-2, Bangalore, is directed to issue revised demand notice as per the computation of tax liability.

We have heard Mr. Harish V.S., learned Counsel for the Appellant and Mr. T.K. Vedamurthy, learned Government Pleader for the Respondent.

In our view, one of the most vital aspects of the case is that no reasons whatsoever are mentioned by the Commissioner while passing the impugned Order except reproduction of the reasons recorded by the First Appellate Authority.

It is hardly required to be stated that if the reasons are not recorded by a quasi judicial authority, the same would not only result into breach of principles of natural justice, but it would also be difficult for higher Forum to examine the ground on which the final operative Order is passed.

Mr. T.K. Vedamurthy, learned Government Pleader for the Respondent is also unable to show any reasons supporting the operative portion of the Order passed by the Commissioner. It is also hardly required to be stated that unless some reason if not in detail but precise are recorded, the operative portion of the Order would not be backed by the reasons of the Authority who has ultimately passed the Order. Such being the position, we find that the impugned Order can be said as non speaking Order and cannot stand in the eye of law.

Under the circumstances, the impugned Order is set aside with a further direction that the matter shall stand restored to the file of the Commissioner and he shall give opportunity of hearing to the parties to the proceedings and fresh Order shall be passed with reasons for consideration of the matter and for ultimate operative portion of the Order which may be passed in accordance with law.

The appeals are allowed to the aforesaid extent. Considering the facts and circumstances, no order as to costs. In view of final disposal of the appeals, IA No. 1/2016 does not survive for consideration and hence shall stand disposed of.