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2024 (12) TMI 1095 - HC - Service TaxChallenge to delay in adjudication proceedings by the respondents - prayer to quash the SCN - HELD THAT - The explanation of reconstruction is general in nature. Even accepting the same, there is no justification as to why from 2003/2008 till 2014, the Tribunal s directions could not be complied with. Therefore, even accepting the reasons given by the revenue and in the absence of any explanation for non-adjudication from 2003/2008 upto 2014, continuation of the present proceedings cannot be justified on this ground - Post 2014 till 2024, also there has been no adjudication of the directions given by the Tribunal. The reconstruction reason given cannot go on forever and, therefore, even on this account post 2014, there is no explanation for non-adjudication of the Tribunal s directions. Therefore, looked at from any angle in the absence of any justifiable reason for not carrying out the directions of the Tribunal, thereby delaying giving effect to the Tribunal s order for more than 13/18 years, the impugned show cause notices dated 9 May 2000 are quashed and set aside. Application disposed off.
Issues:
Delay in adjudication proceedings, Quashing of show cause notices dated 9 May 2000. Analysis: The High Court of Bombay heard multiple writ petitions challenging the delay in adjudication proceedings by the respondents and seeking the quashing of show cause notices dated 9 May 2000. The petitioners argued that there had been a significant delay of 13/18 years since the Tribunal's order remanding the matter back to the adjudicating authority, without any further action being taken. The respondents cited the reconstruction of the Department in 2014 as a reason for the delay in adjudication. However, the Court found the explanation for reconstruction to be general and insufficient. The Court noted that from 2003/2008 until 2014, there was no compliance with the Tribunal's directions, and even post-2014, there was no justification for the continued delay in adjudication. The Court referred to a lead judgment in Coventry Estates Pvt. Ltd. Vs. The Joint Commissioner CGST and Central Excise and Anr. and a series of subsequent decisions by the Court that did not accept reconstruction as a valid reason for prolonged delays in adjudication. The Court emphasized that the reconstruction reason provided by the revenue could not be an indefinite justification for the lack of action on the Tribunal's directions. Considering the prolonged delay of more than 13/18 years in implementing the Tribunal's order, the Court quashed and set aside the show cause notices dated 9 May 2000. The Court made the rule absolute in this regard, with no order as to costs, and disposed of any pending interim applications. This judgment highlights the Court's stance on delays in adjudication proceedings and the importance of timely compliance with Tribunal directions. The Court's decision underscores the need for justifiable reasons for delays and the consequences of prolonged inaction on Tribunal orders.
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