Gujarat High Court
M/S Paxter Lifescience vs Commissioner Of Central Gst And Central ... on 9 October, 2024
Author: Bhargav D. Karia
Bench: Bhargav D. Karia
NEUTRAL CITATION
C/SCA/14075/2023 ORDER DATED: 09/10/2024
undefined
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 14075 of 2023
==========================================================
M/S PAXTER LIFESCIENCE
Versus
COMMISSIONER OF CENTRAL GST AND CENTRAL EXCISE
==========================================================
Appearance:
MR HARDIK V VORA(7123) for the Petitioner(s) No.1
MR CB GUPTA(1685) for the Respondent(s) No.1
==========================================================
CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
and
HONOURABLE MRS. JUSTICE MAUNA M. BHATT
Date : 09/10/2024
ORAL ORDER
(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)
1. By this petition under Article 226 of the Constitution of India, the petitioner has prayed for the following reliefs :
"5(a) A writ of certiorari, or any other appropriate writ, order and/or directions in the nature of certiorari to quash the order dated 12.06.2023 issued by the respondent rejecting the condonation of delay. (Annexure A);Page 1 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024
NEUTRAL CITATION C/SCA/14075/2023 ORDER DATED: 09/10/2024 undefined
(b) A writ of mandamus, or any other appropriate writ, order and/or directions in the nature of Mandamus to condone the minor delay in the export of goods;"
2. Learned advocate Mr.Hardik Vora for the petitioner has submitted that the petitioner made an application for extension of the period to condone the delay, which had taken place after exports of goods beyond 90 days due to non-
availability of transportation services for that period. The petitioner purchased the goods for export under LUT.
3. Reliance was placed by the learned advocate Mr.Hardik Vora for making an application before the respondent authority on the Circular No.37/11/2018-GST dated 15.03.2018 issued by the Central Board of Exercise and Customs ("CBEC") by referring to Paragraph No.5.1 of the said Circular, which reads as under:
Page 2 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024NEUTRAL CITATION C/SCA/14075/2023 ORDER DATED: 09/10/2024 undefined "5.1 It has been reported that the exporters have been asked to pay integrated tax where the goods have been exported but not within three months from the date of the issue of the invoice for export. In this regard, it is emphasised that exports have been zero rated under the Integrated Goods and Services Tax Act, 2017 (IGST Act) and as long as goods have actually been exported even after a period of three months, payment of integrated tax first and claiming refund at a subsequent date should not be insisted upon. In such cases, the jurisdictional Commissioner may consider granting extension of time limit for export as provided in the said sub-rule on post facto basis keeping in view the facts and circumstances of each case. The same principle should be followed in case of export of services."
4. The respondent authority however, rejected the application to condone the delay by observing as under:
"In this regard, it is being conveyed to you that on examination of your application in purview of the GST Act / Rules / Page 3 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024 NEUTRAL CITATION C/SCA/14075/2023 ORDER DATED: 09/10/2024 undefined Notifications, the Hon'ble Principal Commissioner of CGST & C. Ex., Gandhinagar Commissionerate has disallowed extension of period beyond 90 days from the date of issue of the invoices for export."
5. From the above observation, it is only intimation by the Assistant Commissioner (Technical) of the decision taken by the Principal Commissioner of Central GST & Central Excise, Gandhinagar Commissionerate without referring to the reasons, for which he has disallowed the extension of the period beyond 90 days.
6. Learned advocate Mr.C.B.Gupta for the respondent referring to the averments made in the affidavit-in-reply tried to justify the stand of the respondent for not condoning the extension of period in export of the goods beyond 90 days by the petitioner.
Page 4 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024NEUTRAL CITATION C/SCA/14075/2023 ORDER DATED: 09/10/2024 undefined
7. It is well settled legal position that affidavit-in-reply cannot supplement the main order, which is under challenge by assigning the reasons when the main order does not contain any reasons.
8. The Hon'ble Apex Court in following decisions has emphasized the need for giving reasons by the Court or quasi judicial or administrative authority so as to see that when such order is challenged before the higher Forum or before the Court, then the Court can consider such reasons and justification for passing such order:
(1) Sant Lal Gupta v. Modern Coop. Group Housing Society Ltd., reported in (2010) 13 SCC 336 "27. It is a settled legal proposition that not only administrative but also judicial orders must be supported by reasons recorded in it. Thus, while deciding an issue, the Page 5 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024 NEUTRAL CITATION C/SCA/14075/2023 ORDER DATED: 09/10/2024 undefined court is bound to give reasons for its conclusion. It is the duty and obligation on the part of the court to record reasons while disposing of the case. The hallmark of order and exercise of judicial power by a judicial forum is for the forum to disclose its reasons by itself and giving of reasons has always been insisted upon as one of the fundamentals of sound administration of the justice delivery system, to make it known that there had been proper and due application of mind to the issue before the court and also as an essential requisite of the principles of natural justice.
"3. ... The giving of reasons for a decision is an essential attribute of judicial and judicious disposal of a matter before courts, and which is the only indication to know about the manner and quality of exercise undertaken, as also the fact that the court concerned had really applied its mind." [Ed. : As observed in State of Rajasthan v. Sohan Lal, (2004) 5 SCC 573, p. 576, para 3.] The reason is the heartbeat of every conclusion. It introduces clarity in an order and without the same, the order becomes lifeless. Reasons substitute subjectivity with objectivity. The absence of reasons renders an Page 6 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024 NEUTRAL CITATION C/SCA/14075/2023 ORDER DATED: 09/10/2024 undefined order indefensible/unsustainable particularly when the order is subject to further challenge before a higher forum. Recording of reasons is the principle of natural justice and every judicial order must be supported by reasons recorded in writing. It ensures transparency and fairness in decision making. The person who is adversely affected must know why his application has been rejected. (Vide State of Orissa v. Dhaniram Luhar [(2004) 5 SCC 568 : (2008) 2 SCC (Cri) 49 : AIR 2004 SC 1794] , State of Rajasthan v. Sohan Lal [(2004) 5 SCC 573 : (2008) 2 SCC (Cri) 53] , Vishnu Dev Sharma v. State of U.P. [(2008) 3 SCC 172 : (2008) 1 SCC (L&S) 596] , SAIL v. STO [(2008) 9 SCC 407] , State of Uttaranchal v. Sunil Kumar Singh Negi [(2008) 11 SCC 205 : (2008) 2 SCC (L&S) 1093] , U.P. SRTC v. Jagdish Prasad Gupta [(2009) 12 SCC 609 : (2010) 1 SCC (L&S) 156] , Ram Phal v. State of Haryana [(2009) 3 SCC 258 : (2009) 2 SCC (Cri) 72 : (2009) 1 SCC (L&S) 645] , State of H.P. v. Sada Ram [(2009) 4 SCC 422] and Victoria Memorial Hall v. Howrah Ganatantrik Nagrik Samity [(2010) 3 SCC 732] .)"Page 7 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024
NEUTRAL CITATION C/SCA/14075/2023 ORDER DATED: 09/10/2024 undefined (2). S.N. Mukherjee v. Union of India, reported in (1990) 4 SCC 594 "35. The decisions of this Court referred to above indicate that with regard to the requirement to record reasons the approach of this Court is more in line with that of the American courts. An important consideration which has weighed with the court for holding that an administrative authority exercising quasi-judicial functions must record the reasons for its decision, is that such a decision is subject to the appellate jurisdiction of this Court under Article 136 of the Constitution as well as the supervisory jurisdiction of the High Courts under Article 227 of the Constitution and that the reasons, if recorded, would enable this Court or the High Courts to effectively exercise the appellate or supervisory power. But this is not the sole consideration. The other considerations which have also weighed with the Court in taking this view are that the requirement of recording reasons would (i) guarantee consideration by the authority; (ii) introduce clarity in the decisions; and (iii) minimise chances of arbitrariness in decision-
Page 8 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024NEUTRAL CITATION C/SCA/14075/2023 ORDER DATED: 09/10/2024 undefined making. In this regard a distinction has been drawn between ordinary courts of law and tribunals and authorities exercising judicial functions on the ground that a Judge is trained to look at things objectively uninfluenced by considerations of policy or expediency whereas an executive officer generally looks at things from the standpoint of policy and expediency.
36. Reasons, when recorded by an administrative authority in an order passed by it while exercising quasi-judicial functions, would no doubt facilitate the exercise of its jurisdiction by the appellate or supervisory authority. But the other considerations, referred to above, which have also weighed with this Court in holding that an administrative authority must record reasons for its decision, are of no less significance. These considerations show that the recording of reasons by an administrative authority serves a salutary purpose, namely, it excludes chances of arbitrariness and ensures a degree of fairness in the process of decision-making. The said purpose would apply equally to all decisions and its application cannot be confined to decisions which are subject to Page 9 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024 NEUTRAL CITATION C/SCA/14075/2023 ORDER DATED: 09/10/2024 undefined appeal, revision or judicial review. In our opinion, therefore, the requirement that reasons be recorded should govern the decisions of an administrative authority exercising quasi-judicial functions irrespective of the fact whether the decision is subject to appeal, revision or judicial review. It may, however, be added that it is not required that the reasons should be as elaborate as in the decision of a court of law. The extent and nature of the reasons would depend on particular facts and circumstances. What is necessary is that the reasons are clear and explicit so as to indicate that the authority has given due consideration to the points in controversy. The need for recording of reasons is greater in a case where the order is passed at the original stage. The appellate or revisional authority, if it affirms such an order, need not give separate reasons if the appellate or revisional authority agrees with the reasons contained in the order under challenge."
(3). Union of India v. Ibrahim Uddin, reported in (2012) 8 SCC 148 Page 10 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024 NEUTRAL CITATION C/SCA/14075/2023 ORDER DATED: 09/10/2024 undefined "44. It is a settled legal proposition that not only administrative order, but also judicial order must be supported by reasons, recorded in it. Thus, while deciding an issue, the court is bound to give reasons for its conclusion. It is the duty and obligation on the part of the court to record reasons while disposing of the case. The hallmark of order and exercise of judicial power by a judicial forum is for the forum to disclose its reasons by itself and giving of reasons has always been insisted upon as one of the fundamentals of sound administration of the justice delivery system, to make it known that there had been proper and due application of mind to the issue before the court and also as an essential requisite of the principles of natural justice. The reason is the heartbeat of every conclusion. It introduces clarity in an order and without the same, the order becomes lifeless. Reasons substitute subjectivity with objectivity. The absence of reasons renders an order indefensible/unsustainable, particularly when the order is subject to further challenge before a higher forum. Recording of reasons is the principle of natural justice and every judicial order must be supported by reasons Page 11 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024 NEUTRAL CITATION C/SCA/14075/2023 ORDER DATED: 09/10/2024 undefined recorded in writing. It ensures transparency and fairness in decision-making. The person who is adversely affected must know why his application has been rejected. (Vide State of Orissa v. Dhaniram Luhar [(2004) 5 SCC 568 :
(2008) 2 SCC (Cri) 49 : AIR 2004 SC 1794] , State of Uttaranchal v. Sunil Kumar Singh Negi [(2008) 11 SCC 205 : (2008) 2 SCC (L&S) 1093] , Victoria Memorial Hall v. Howrah Ganatantrik Nagrik Samity [(2010) 3 SCC 732 : AIR 2010 SC 1285] and Sant Lal Gupta v. Modern Coop. Group Housing Society Ltd. [(2010) 13 SCC 336 :
(2010) 4 SCC (Civ) 904]"
9. In view of the above settled legal position, we are of the opinion that the impugned order, dated 12.06.2023 which is bereft of any reason is liable to be quashed and set aside and is accordingly quashed and set aside. The matter is remanded back to the respondent to pass afresh order giving detailed reasons in support of the decision, which may be taken in accordance with law. It is clarified that we have not gone into Page 12 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024 NEUTRAL CITATION C/SCA/14075/2023 ORDER DATED: 09/10/2024 undefined the merits of the matter and all the issues, which are raised in this petition are kept open to be considered while passing the reasoned order by the respondent.
With the aforesaid observation, the petition is disposed of. Notice is discharged.
sd/-
(BHARGAV D. KARIA, J) sd/-
(MAUNA M. BHATT,J) DIPTI PATEL...
Page 13 of 13 Uploaded by DIPTI PATEL(HC00191) on Mon Oct 28 2024 Downloaded on : Sat Nov 02 21:42:36 IST 2024