In a major relief to the Bombay Dyeing and Manufacturing, the Bombay High Court has 16 years show-cause notice has not been adjudicated.
Mr. Patkar, Counsel appearing for the Petitioner highlighted the said Show Cause Notice. He submits that the Petitioner was never informed that the said Show Cause Notice was kept in the callbook at any point in time. He submits that the Respondent cannot be allowed to proceed with the Show Cause Notice after more than 16 years.
On the other hand, Mr. Kantharia, learned Counsel appearing for the Revenue states that 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.
The division bench of Justice S.M.Modak and R.D.Dhanuka has held that It is not expected from the assessee to preserve the evidence/record intact for such a long period to be produced at the time of hearing of the Show-Cause Notice. The Respondent having issued the Show-Cause notice, it is their duty to take the said Show-Cause notice to its logical conclusion by adjudicating upon the said Show-Cause Notice within a reasonable period of time. In view of the gross delay on the part of the Respondent, the Petitioner cannot be made to suffer.
“This Court in the said judgment 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 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 the callbook 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 callbook, the Petitioner would have immediately applied for appropriate reliefs by filing the appropriate proceedings,” the court said.
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