2024 (12) TMI 970 - HC - Customs

Delay in adjudication of the show cause notice - range of delay is from 9 years to 20 years, most of them 9 years - either the show cause notice was transferred to call book or there was a restructuring of the Commissionerate s office and therefore no adjudication could be done within reasonable time - HELD THAT - On identical reasons canvassed by the Respondents either of transfer of show cause notice to the call book without intimating the Petitioner or restructuring in the Commissionerate s office, have passed series of orders rejecting such contentions. Reliance can be placed in COVENTRY ESTATES PVT. LTD. VERSUS THE JOINT COMMISSIONER CGST AND CENTRAL EXCISE ANR. 2023 (8) TMI 352 - BOMBAY HIGH COURT where it was held that ' A substantial delay and inaction on the part of the department to adjudicate the show cause notice would seriously nullify the noticee s rights causing irreparable harm and prejudice to the noticee. A protracted administrative delay would not only prejudicially affect but also defeat substantive rights of the noticee.' On similar grounds this Court and the Coordinate Benches have quashed such notices which are delayed without any justifiable reason. Since the reasons given by the Respondents in the above Petitions are identical to those which were the subject matter of Petitions which are disposed of by various above orders, respectfully following the decision passed by the Coordinate Benches and by this Bench, the show cause notice and order in original quashed and set aside on the ground of non-justification for delay in adjudication. Application disposed off.

Summary

Issues:
Delay in adjudication of show cause notice.

Analysis:
The High Court of Bombay heard various Petitions with similar issues related to delays in adjudication of show cause notices ranging from 9 to 20 years. The Respondents cited reasons such as transferring the notice to the call book or office restructuring for the delays. However, the Court noted that there was no evidence of the Respondents informing the Petitioners about the transfer to the call book. The restructuring reason was deemed insufficient to justify delays of such magnitude. The Court referred to previous cases where similar reasons were rejected, including Coventry Estates Pvt. Ltd. vs. The Joint Commissioner CGST and Central Excise and others, and many others. The Court consistently rejected the contentions based on transfer to call book or office restructuring. Therefore, the Court quashed and set aside the show cause notices and orders in original due to the lack of justification for the delays in adjudication.

The Court emphasized that the reasons provided by the Respondents in the present Petitions were identical to those rejected in previous cases. Following the decisions of the Coordinate Benches and the Court's own previous judgments, the Court ruled in favor of the Petitioners and quashed the show cause notices and orders due to unjustified delays. The Court made the rule absolute and did not award any costs. Any pending Interim Applications were also disposed of accordingly.