The Division Bench of the Bombay High Court consisting of Justices R.D.Dhanuka and S.M.Modak opined that when a show-cause notice is issued, it is expected that the same would be taken to its logical consequences within a reasonable period so that a finality is reached.
Facts
The Petitioner has filed reply to the Show Cause Notice within four weeks from the date of receipt of the said notice and did not get any further communication from the Respondent for hearing or any adjudication upon the said Show Cause Notice from the Respondent till that date. The Petitioner has thus filed this Petition.
Contentions Made
Appellant: The Petitioner was never informed that the said Show Cause Notice was kept in call book at any point of time. The Respondent cannot be allowed to proceed with the Show Cause Notice after more than 16 years. Reliance was placed upon Parle International Ltd. vs. Union of India.
Respondent: The stand taken by the Respondent is already set out in the affidavit-in-reply filed by the Respondent and on those grounds, the Petitioner is not entitled to seek any relief.
Observations of the Court
The Bench observed that:
“The Petitioner was not informed that the said Show Cause Notice was kept in call book as alleged in the affidavit-in reply. There is no delay attributable on the part of the Petitioner in the affidavit-in-reply filed by the Respondent.”
“This Court in case of Parle International Ltd (supra) held that when a show-cause notice is issued to a party, it is expected that the same would be taken to its logical consequences within a reasonable period so that a finality is reached. In this case, the show-cause notice has not been adjudicated upon for about 16 years. We have perused the affidavit-in-reply filed by the Respondent. In the affidavit-in-reply, the Respondent does not allege that the Petitioner was informed about the show-cause notice having been kept in call book as sought to be alleged in the affidavit-in-reply filed by the Respondent. If the Respondent would have informed the Petitioner about the said Show-Cause Notice in the year 2005 itself, having been kept in call book, the Petitioner would have immediately applied for appropriate reliefs by filing the appropriate proceedings.”
Judgment
The impugned Show-Cause Notice was quashed and set aside.
Case Name: The Bombay Dyeing and Manufacturing Company Limited vs Deputy Commissioner of CGST and Cx, Div-Ix, Mumbai Central GST Commissionerate
Citation: WRIT PETITION NO.2874 OF 2021
Bench: Justice R.D.Dhanuka, Justice S.M.Modak
Decided on: 14th February 2022
Read Judgment @Latestlaws.com
Picture Source :
