Published on: 13 August 2023 at 16:50 IST
Court: High Court of Bombay
Citation: Parle International Ltd. V. Union of India (2020)
Honourable High Court of Bombay has held that the where the Tax Adjudication proceedings are commenced on show-cause notices after 14 to 17 years would cause serious prejudice to the Tax Assessee. It is held that Tax Authorities are responsible for the show-cause notices which were kept in dormant list/call book, awaiting final decision in Central Excise Receipts Audit (CERA) audit objection. It is held that Courts inordinate delay must be leaned in favour of quashing the proceedings.
24. Firstly, this Court held that a show-cause notice issued a decade back should not be allowed to be adjudicated upon by the revenue merely because there is no period of limitation prescribed in the statute to complete such proceedings. Larger public interest requires that revenue should adjudicate the show-cause notice expeditiously and within a reasonable period.
What would be the reasonable period would depend upon the facts and circumstances of each case but certainly a period of 13 years cannot be termed as a reasonable period. Secondly, regarding keeping the show-cause notice in the dormant list or the call book, this Court held that such a plea cannot be allowed or condoned by the writ court to justify inordinate delay at the hands of the revenue.
To accept such a contention would defeat the rule of law itself. Taking cognizance of such an aspect would amount to giving credence to extraneous matters. In any case such a procedure internally adopted by the respondents is not binding on the Court.
Drafted By Abhijit Mishra
