In a recent Judgment, the division bench of the Bombay High Court criticized the revenue authorities for not adjudicating the matters within a reasonable time. While directing the authorities, to complete the proceedings expeditiously, the bench comprising of Justices S.C Dharmadhikari and B.P Colabawalla opined that liberal adjournments do not serve any purpose but would rather defeat the public interest.
A show cause notice was issued to the assessee in the year 1991, alleging that they attempted to evade payment of excise duty. The assessee, on receipt of Show Cause Notice, sought for adjournment. Several attempts made by the Revenue to conclude the assessment proceedings were failed due to non-corporation of assessee. Finally, the Officer decided to adjudicate the matter after 25 years. The assessee objected to the same by stating that the relevant records are not traceable.
Criticizing the attitude of the revenue, the bench pointed out the difference between the power that the authorities possess and which has to be exercised coupled with a duty. “Just as there is power to issue any Show Cause Notice, equally there is a duty to adjudicate it promptly.”
The bench said that, “If one is interested in protecting the revenue and to subserve the larger public interest, then, expediency demands that once a Show Cause Notice is issued and duly served, reasonable opportunity has to be afforded to the assessee to reply to the same and/or to submit his/her explanation on merits. If such an opportunity is availed of by the assessee and he/she duly inspects the record, then, the Revenue cannot be said to be acting unreasonably if it directs the assessee to get ready and argue the case.”
“There is no vested right in prolonging the proceedings and none can claim that the law permits this course. Adjournments may be sought frequently but they are not to be granted liberally. That gives impression that the Revenue is not interested in proceeding with the matter, or rather has a vested interest in assisting the assessee,” the bench also said.
Before concluding, the bench added that “the principles of natural justice are not codified. They only contemplate that opportunity to defend has to be granted in the event an adverse order having civil consequences has to bepassed. Therefore, the quasi-judicial authorities should realize that they need not be friendly or liberal with the assessee and to such an extent as would give an opportunity to the assessee to complain that the Show Cause Notice having been issued decades back, it cannot be adjudicated.”
Read the full text of the Judgment below.
