No Time Limit u/s 174(2)9e) of CGST Act Does Not Mean Indefinite Time: Jharkhand HC Stays 9-Year-Old Pending Excise Case [Read Order]

The division bench comprising Chief Justice M.S. Ramachandra Rao and Justice Deepak Roshan passed the order while hearing a writ petition challenging inordinate delay in the conclusion of proceedings initiated through a show cause notice dated 12.10.2015.

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The petitioner contended that although the show cause notice was issued nearly a decade ago, the adjudication has not yet been concluded. The respondents, represented by Mr. Amit Kumar, accepted notice in the matter.

The High Court, while granting interim relief, relied on its earlier decision dated 09.10.2023 in W.P.(T) No. 2890 of 2022, wherein it was held that even though Section 174(2)(e) of the Central Goods and Services Tax (CGST) Act, 2017 does not explicitly prescribe a time limit for continuation of proceedings under repealed laws, such actions must still be completed within a “reasonable time.” The Court stated that absence of a statutory limitation does not grant unrestrained liberty to delay proceedings indefinitely.

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In the present case, the Court noted that over nine years had passed since the issuance of the show cause notice without any conclusion of the matter by the Central Excise Authority.

The bench ordered an interim stay on all further proceedings before the second respondent until further orders. The matter has been listed for further hearing on 15.07.2025, and the Court directed the respondents to file their counter-affidavit in the meantime.

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