2022 (11) TMI 645 - HC - Central Excise

Seeking revival of SCN - circular dated 26.05.2003 - HELD THAT - Although, Ms Kavita Jha, in fairness, does not dispute that such a circular exists and the procedure encapsulated therein is in vogue, it was incumbent on the respondents to inform the petitioner/notice as to why the show cause notice was not being adjudicated. The assessees need to arrange their affairs and prepare themselves for bearing the burden of the financial liability that may befall them - there is no explanation as to why, after January 2017, no steps were taken to adjudicate the subject show cause notice. The matter needs examination - issue notice.

Summary

Issues:
1. Revival of a show cause notice issued in 2009 in 2022.

Analysis:
The petitioner raised a grievance regarding the revival of a show cause notice issued in 2009 in 2022. The petitioner contended that after filing a reply in 2009 and attending a personal hearing in 2010, respondent no.1 served a letter in 2022 fixing a date for another personal hearing. The petitioner requested an adjournment, highlighting the significant delay of twelve years in the proceedings.

The contesting respondents, represented by Mr. R. Ramachandran, relied on a circular from 2003, stating that matters are placed in a "call book" if the issue is subject to pending adjudication in a superior forum. They provided notes from 2009 and 2015 indicating that the matter was consigned to the call book due to a related case pending before the Supreme Court. However, the judgment in the related case was delivered in January 2017, raising questions about the continued delay in adjudicating the show cause notice.

The court noted that the petitioner was not informed about the procedure of placing matters in the call book, emphasizing the importance of keeping parties informed about the status of their cases. The court expressed the view that assessees should be prepared for potential financial liabilities and questioned the lack of action taken to adjudicate the show cause notice after 2017.

Consequently, the court decided to examine the matter further, issuing notices to the respondents and directing the filing of counter-affidavits within six weeks. The operation of the impugned show cause notice was stayed until the next hearing scheduled for January 2023. The court also instructed the Registry to scan and upload relevant documents for record-keeping purposes.