2021 (7) TMI 699 - SC - Service Tax

Delay in filing appeal before the Apex Court - Condonation of delay - Reduction of delay in filing SLP - one reason for the delay is due to the liner process being followed currently and even if we have a detailed timeline it may be difficult to avoid delay unless steps in filing of SLP were merged. He suggested that instead of files going from one desk to another in the office of Commissioner in the field then in Directorate in CBDT/CBIC and then Ministry of Law and likewise again in the return journey it should be examined whether an Inter-ministerial standing committee would be administratively possible. HELD THAT - During the course of the hearing various suggestions have been discussed including the need to incorporate technological innovations in the process of monitoring litigation involving the revenue arm of the Union government. In order to facilitate further deliberations by the authorities of the Union government we post the further hearing on 15 March 2021. It is requested that a consolidated proposal also incorporating technological modalities be placed before the Court on the next date of listing. The Solicitor General has agreed to interact with the Director General National informatics Centre. Since sufficient cause has been shown in condoning the delay delay in filing the appeal is condoned - Counter affidavit shall be filed within three weeks from today.

Summary

Issues:
1. Delay in filing appeals in revenue matters involving indirect taxation.
2. Mechanism to reduce delay in filing Special Leave Petitions (SLPs) before the Supreme Court.
3. Incorporating technological innovations in monitoring litigation involving the revenue arm of the Union government.

Issue 1: Delay in filing appeals in revenue matters involving indirect taxation
The Supreme Court noted a pattern of gross delays in filing appeals in revenue matters involving indirect taxation. The Court emphasized the need for the Union government to ensure timely litigation of necessary matters and closure of unworthy cases. This observation led to internal discussions chaired by the Finance Secretary, involving senior officials from the Union government, to address the issue. The mechanism for filing Special Leave Petitions (SLPs) was scrutinized, and a detailed note was prepared outlining the current process and proposing a stage-by-stage timeline to ensure timely filing of SLPs within a stipulated timeframe of 90 days.

Issue 2: Mechanism to reduce delay in filing Special Leave Petitions (SLPs) before the Supreme Court
The Supreme Court, after detailed discussions, proposed a new mechanism to expedite the decision-making process for filing SLPs. The mechanism included steps such as immediate action by the Government Advocate to obtain the judgment copy, setting up Committees in each Board (CBDT and CBIC) to decide on filing SLPs, and creating a large panel of Counsel to draft SLPs efficiently. The proposed mechanism aimed to streamline the process, reduce delays, and ensure timely filing of SLPs. The Court directed the Solicitor General to present the refined proposal for further consideration and finalization within the next two weeks.

Issue 3: Incorporating technological innovations in monitoring litigation
The Supreme Court highlighted the importance of incorporating technological innovations in monitoring litigation involving the revenue arm of the Union government. To facilitate further deliberations, the Court scheduled a hearing on 15 March 2021 and requested a consolidated proposal that includes technological modalities. The Solicitor General agreed to collaborate with the Director General of the National Informatics Centre to explore technological solutions for enhancing the monitoring and management of litigation processes. The Court also condoned the delay in filing the appeal, directed the filing of counter affidavits within three weeks, and requested brief notes of submissions from counsels to facilitate the final disposal of the matter.