2015 (2) TMI 295 - HC - Central Excise

Prolonged inquiries - Without any valid reasons - inquiry regarding the petitioner s manufacturing activities. - On 13th April 2011, a panchnama was drawn at the factory premises of the petitioner. This was a starting point of inquiry by the Department. Case of the petitioner is that after nearly three years of the said incident, till date, the inquiry/investigation has not been completed - Undue hardship - Held that - Though there is no outer limit for completion of inquiry /investigation, it cannot be gainsaid that pending and protracted inquiry would cause undue harassment to a citizen. An inquiry, therefore, should not be continued indefinitely without sufficient reasons. It is, of course, true that, often times, the facts being complex, gathering such facts may not be an easy task. In such a situation, inquiries may even continue for a long period of time. This, however, without any justification cannot therefore be always expected. - we would request the Commissioner, Central Excise, Surat-I to apply his mind and take such steps, as may be found necessary, to ensure that the inquiry/investigation is not delayed or dragged beyond reasonable time, that too without any valid reasons. For such purpose, this petition may be placed before the said authority along with the annexures. He may take suitable steps after permitting the petitioner a hearing - Petition disposed of.

Summary

Issues: Delay in completion of inquiry/investigation by Customs & Central Excise Department causing hardship to petitioner.

In this judgment delivered by the Gujarat High Court, the central grievance raised by the petitioner was the prolonged inquiry by the Customs & Central Excise Department regarding the petitioner's manufacturing activities. The inquiry began with a panchnama drawn at the factory premises of the petitioner on 13th April 2011, but even after nearly three years, it had not been completed, leading to periodic summoning of the petitioner and family members, causing undue hardship and hindering business activities. The court acknowledged the complexity of gathering facts but emphasized that an inquiry should not be prolonged indefinitely without valid reasons to prevent harassment to a citizen.

The court directed the Commissioner, Central Excise, Surat-I to ensure that the inquiry/investigation is not unreasonably delayed or dragged without valid reasons. The Commissioner was instructed to review the matter, take necessary steps, and ensure the completion of the inquiry within a reasonable time frame. The petitioner was to be given a hearing before any steps were taken, and the entire process was to be completed within four weeks from the date of the court order.

The petition was disposed of accordingly, with direct service to respondent no. 2 permitted. The judgment highlighted the importance of timely completion of inquiries to prevent undue harassment to individuals and emphasized the need for authorities to act promptly and efficiently in such matters to safeguard the rights and interests of citizens.