2023 (7) TMI 662 - SCH - Central Excise

Seeking closure of proceedings initiated by virtue of two show cause notices - denial of CENVAT Credit - HELD THAT - The proceedings which were commenced by virtue of the two show cause notices, have not been concluded although over a decade has passed. Be that as it may, it is found that submission made by learned Additional Solicitor General as to concluding the proceedings within the time frame to be fixed by this Court needs to be accepted. The matter remanded to the Commissioner of GST (adjudicating Authority) with a direction to conclude the proceedings within a period of eight weeks from 10.08.2023 - appeal allowed by way of remand.

Summary

Issues involved:
The Supreme Court addressed the issue of the closure of proceedings initiated by two show cause notices by the Department, the failure of the respondents to appear for personal hearings, the High Court's decision to quash the show cause notices, the prejudice to the Revenue, and the need to conclude the proceedings within a specific timeframe.

Closure of Proceedings:
The Department appealed against the High Court's order closing proceedings initiated by two show cause notices regarding CENVAT credit availed by the respondents. The High Court accepted the respondent's contentions and quashed the notices, leading to the conclusion of the proceedings. The Additional Solicitor General argued that the abrupt conclusion prejudiced the Revenue as the demands made were not adjudicated upon, while the respondent's counsel highlighted the prolonged lack of adjudication on the notices.

Remand and Conclusion of Proceedings:
The Supreme Court found that despite over a decade passing, the proceedings from the show cause notices remained inconclusive. The Court accepted the Additional Solicitor General's submission to conclude the proceedings within a specified timeframe. Consequently, the impugned order was set aside, and the matter was remanded to the Commissioner of GST with a direction to conclude the proceedings within eight weeks from a specified date. The respondents were directed to appear without separate notices, and both sides were granted an opportunity to present their contentions before the Authority.

Decision:
The appeal was allowed, and the matter was disposed of with no costs. The Court emphasized the need for the Authority to provide adequate opportunity to both sides and conclude the proceedings within the stipulated timeframe. All contentions on both sides were left open to be raised before the concerned Authority, ensuring a fair and comprehensive adjudication process.