2023 (10) TMI 1430 - SCH - Customs

Delay in issuance of SCN - proper reason for delay or not - HELD THAT - There is no explanation whatsoever for the delay in issuance of notices to the respondents-herein. In the circumstances, a challenge made to the show cause notices before the High Court was successful inasmuch as the action of the respondent authority was held to be belated and hit by delay and latches. Consequently, the show cause notices were quashed - the impugned order would not call for any interference in this case. The special leave petition is dismissed on the basis of delay and latches.

Summary

Issues involved: Delay in issuance of show cause notices leading to challenge before High Court and quashing of notices.

Analysis:
1. The Supreme Court addressed the issue of delay in the issuance of show cause notices in a case arising from Special Civil Application No. 7165 of 2021 concerning the assessment period of 2011-2015.

2. The Court noted that the show cause notices were issued significantly late, ranging from 6 to 10 years after the relevant period. The lack of any explanation for this delay was highlighted.

3. The challenge against the belated show cause notices was successful in the High Court, where it was determined that the delay and latches rendered the action of the respondent authority invalid. As a result, the show cause notices were quashed.

4. The Supreme Court concluded that the High Court's decision to quash the show cause notices due to delay and latches did not warrant any interference. Therefore, the special leave petition was dismissed on these grounds.

5. The Court further ordered the dismissal of any pending applications related to the case, bringing a resolution to the matter.