Bhansali Industries Vs Union of India Through the Secretary (Bombay High Court)
The petitioner is a registered tax payer. It was issued a show cause notice, inter alia, denying input tax credit on the ground that the registration of the supplier has been cancelled (with retrospective effect). The petitioner replied. However, the ITC credit ledger came to be blocked and order confirming the demand came to be passed. The same were challenged in writ petition.
The Hon’ble Bombay High Court set aside the impugned order and allowed the petition.
It held:
(i) the credit ledger has been unblocked during the pendency of the writ petition;
(ii) the order is absolutely bereft of any reason. Reasons are the live link between the mind of the decision maker and the decision;
(iii) right of appeal is rendered nugatory in absence of a reasoned order;
(iv) reasons substitute objectivity with subjectivity; follows the Hon’ble Supreme Court judgment in Cyril Lasrado;
(v) remits the matter back for fresh adjudication after hearing the petitioner.
The matter was argued by Ld. Counsel Bharat Raichandani along with Mahesh Raichandani
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. Heard learned counsel for the parties.
2. Rule. The Rule is made returnable immediately at the request and with the consent of the learned counsel for the parties.
