M/S Birla Corporation Ltd vs Union Of India
2022 Latest Caselaw 6464 Raj

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 6313/2022

M/s Birla Corporation Ltd., Chanderia, Chittorgarh, Rajasthan Through Power Of Attorney Holder Sunil Kumar Gadiya S/o Dhanraj Gadiya Aged About 51 Years, Residing At Madhav Nagar, Chanderia, Chittorgarh, Rajasthan - 312021.

----Petitioner Versus

1. Union Of India, Through The Secretary Ministry Of Finance, No.137, North Block, New Delhi, Delhi

2. Commissioner, Cgst And Central Excise, Udaipur, Rajasthan.

----Respondents

For Petitioner(s) : Mr. Vikas Balia, Senior Advocate, assisted by Mr. Vinay Kothari, Mr. Pradeep Singh Khichi and Mr. Anand Bhattacharya For Respondent(s) : Mr. Rajvendra Saraswat

HON'BLE MR. JUSTICE SANDEEP MEHTA HON'BLE MR. JUSTICE VINOD KUMAR BHARWANI

Order

04/05/2022

Heard learned counsel for the petitioner and perused

the material available on record.

By way of the instant writ petition, the petitioner has

invoked the extraordinary writ jurisdiction of this court for

assailing the show cause notice 08.11.2007 (Annex.1) raising a

demand of Rs.6,45,25,616/- towards recovery of incorrectly

availed CENVAT credit and consequential penalty. The petitioner

has alleged that no action whatsoever was forthcoming after

issuance of the notice dated 08.11.2007. However, as a bolt out

of the blue, further notices dated 08.04.2022 and 19.04.2022

(Annex.3 collectively) were issued by the respondents to the

petitioner reviving the demand raised under the original notice

(2 of 2) [CW-6313/2022]

dated 28.01.2008, which has virtually become otiose by efflux of

time and subsequent legal pronouncements.

Mr. Vikas Balia, learned Senior Advocate, representing

the petitioner, submits that identical notice was issued to M/s.

Aditya Cements, who challenged the same by way of Tax

Reference (Civil) No.18/2003, which was decided in favour of the

assessee by the Hon'ble High Court vide judgment dated

27.03.2008. The Department preferred a SLP against the said

order, which was subsequently withdrawn. His fervent contention

was that unexplained delay of more than 15 years by the

Department in sitting tight over the original show cause notice and

in reviving the same at this highly belated stage without any

justification being shown is depictive of high-handed and arbitrary

action and hence, the same deserves to be quashed.

The matter requires consideration.

Issue notice of the writ petition as well as the stay

petition to the respondents.

Learned counsel Mr. Rajvendra Saraswat appears on

behalf of the respondents.

Reserving the right of the respondents to move an

application under Article 226 (3) of the Constitution of India,

further proceedings as a consequence of the impugned notices

dated 08.11.2007 (Annex.1) and 08.04.2022 and 19.04.2022

(Annex.3 collectively) shall remain stayed.

Connect and list alongwith D.B. Civil Writ Petition

No.5985/2022 on 13.07.2022.

(VINOD KUMAR BHARWANI),J (SANDEEP MEHTA),J 99-Pramod/-

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