Case Law Details
Namo Narayan Singh Vs State of U.P. and 2 Others (Allahabad High Court)
In this case, the petitioner challenged two orders: one issued by the Assistant Commissioner of Commercial Tax, cancelling the petitioner’s GST registration, and the other by the Additional Commissioner, rejecting the petitioner’s appeal against the cancellation. The petitioner, a proprietorship firm engaged in civil construction works, contended that the show cause notice for registration cancellation lacked specifics and that the authorities failed to provide valid reasons for their decisions.
The Court noted that the orders lacked cogent reasons, rendering them unsustainable. It emphasized the importance of reasons in administrative and judicial decisions, as they provide transparency and enable parties to understand the basis of a decision. Quoting judicial precedents, the Court highlighted that the absence of reasons violates principles of natural justice and undermines the legitimacy of the decision-making process.
Citing various legal authorities, the Court reiterated that reasons are essential for judicial orders, as they form the basis for further appeals and ensure fairness in decision-making. It stressed that failure to provide reasons amounts to a denial of justice.
The Court referred to the case of The Secretary & Curator, Victoria Memorial v. Howrah Ganatantrik Nagrik Samity and ors., where it was held that “An order without valid reasons cannot be sustained. To give reasons is the rule of natural justice.” The Court also cited Chandana Impex Pvt. Ltd. Vs. Commissioner of Customs, New Delhi, where it was emphasized that “every litigant… is entitled to know the reasons for acceptance or rejection of his prayer, particularly when either of the parties to the lis has a right of further appeal.”
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