An administrative authority must provide reasoned decisions to uphold natural justice, failing which orders become arbitrary and invalid.

ORDER :

1. Aggrieved by the order passed by the appellate authority constituted under the G.S.T., the petitioner has filed the instant petition for grant of following reliefs :-

“(i) For issuance of an appropriate writ/ order/ direction including writ of certiorari for quashing/setting aside the ex-parte appellate order contained in Memo No. 540/Dhanbad dated 18.07.2023 and consequential Form GST APL-04 dated 22.07.2023 passed in Appeal Case No. AD200222003954Q/DH/GST-38/2021-2022 by the Additional Commissioner State Tax (Appeal), Dhanbad Division, Dhanbad (Annexure-5 & 5/1 respectively) pertaining to the period 2020-21 wherein appeal of the petitioner challenging the adjudication order No. 83/2021-22 dated 22.02.2022 passed by Respondent No. 6 has been rejected without granting proper opportunity of hearing to petitioner and without entering into merit of the case;

(ii) For issuance of further appropriate writ/order/direction, for quashing/setting aside the adjudication order No. 83/2021-22 dated 22.02.2022 passed under Section 74 of the Jharkhand Goods and Service Tax Act, 2017 (hereinafter referred as JGST Act, 2017 for short) and consequential summary of order as contained in Form GST DRC-07 dated 22.02.2022 pertaining to the period 2020-21 (Annexure-3 & 3/1 respectively) both passed by the Respondent No. 6, wherein liability of tax, interest and penalty has been fastened upon the Petitioner in utter violation of principles of natural justice as well as in utter violation of provisions contained under Section 73/74 and 75 of the JGST Act;

(iii) For issuance of an appropriate writ/order/direction including Writ of declaration, declaring that the adjudication order dated 22.02.2022 passed by the Respondent No. 6 in alleged exercise of power under Section 74 of the JGST Act, is wholly illegal and arbitrary, as the same has been passed in utter violation of provisions contained under Section 74 and 75 of the JGST Act and as well as in utter violation of principles of natural justice actuated with malice in law against the Petitioner;”

2. Appraisal of the impugned order passed by the appellate authority would reveal that the Appellate Authority has simply confirmed the order passed by the Assessing Authority only on the ground that the writ petitioner did not appear before the Appellate Authority and no reasons whatsoever have been assigned for agreeing with the order passed by the Assessing Authority.

3. It is settled law that reasons is the heartbeat of every conclusion. An order without valid reasons cannot be sustained. To give reasons is the rule of natural justice. One of the most important aspect for necessitating to record reason is that it substitutes subjectivity with objectivity. Equally settled is the preposition that not only the judicial order, but also the administrative order must be supported by reasons recorded in it.

4. 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 and the decision or conclusion arrived at. Reasons substitute subjectivity by objectivity. The emphasis on recording reasons is that if the decision reveals the "inscrutable face of the sphinx", it can, by its silence, render it virtually impossible for the Courts to perform the appellate function or exercise the power of judicial review in adjudging the validity of the decision. Right to reason is an indispensable part of a sound judicial system.

5. The necessity of assigning reaso