The Supreme Court directed the Goods and Service Tax Department to conclude the entire proceedings within 8 weeks for adjudicating the demand for the CENVAT Credit.
Swati Menthol And Allied Chemicals Ltd, the respondent filed an appeal for closing the proceedings initiated against the availing of CENVAT credit, and the High Court of Punjab and Haryana closed the entire proceedings initiated by show cause notice for demanding the CENVAT credit.
The revenue department appealed against the order passed by the High Court of Punjab and Haryana for quashing the entire proceedings initiated by the two show cause notice issued by the department for demanding CENVAT credit.
The counsel for the department contended that the conclusion of the proceedings according to the impugned order had caused prejudice to the revenue since the proceedings according to the issuance of the show cause notices and the demand made had not been adjudicated upon and the respondent is liable to pay to the department in terms of the demand made in the show cause notices.
The counsel for the respondent contended that for ten long years, the show cause notices remained without any adjudication, and in a similar matter, this Court had in the peculiar facts of the said case, affirmed the order of the High Court and therefore, the same may be followed in respect of the instant proceedings also and dismiss the appeal filed by the department.
The Court observed that the two show cause notices referred had not been concluded although over a decade has passed. Thus the show cause notice issued by the department was not enough for adjudicating the demand for CENVAT Credit. The two-member bench comprising P.V Nagarthna and Prasanth Kumar Mishra directed the department to conclude the entire proceedings within 8 weeks by considering all the relevant materials filed by the respondent.
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