Hindustan Petroleum Corporation Ltd. Vs State of Maharashtra & Ors. (Bombay High Court)
In Hindustan Petroleum Corporation Ltd. vs State of Maharashtra & Ors., the Bombay High Court examined whether a delayed assessment order passed by the municipal authority was legally sustainable. The petitioner challenged an assessment order dated 21 August 2023 on the ground that it was issued after an inordinate delay of more than ten years from the date of issuance of the show cause notice (Form-H) dated 24 August 2011 and beyond the period prescribed under Rule 25 of the Cess Rules.
The facts indicated that the petitioner had filed monthly returns and annual statements for the relevant period (April 2010 to March 2011), including details of goods exported outside the municipal jurisdiction where concessional cess treatment applied. A show cause notice was issued in August 2011, to which the petitioner responded with all requisite documents in September 2011. However, no further action was taken by the authorities for nearly nine years, until July 2023, when fresh communication was issued, followed by the impugned assessment order and demand notice in August 2023.
The petitioner contended that the assessment was barred by limitation under Rule 25(5) and (7) of the Cess Rules, which required completion of assessment within three years from the end of the relevant period. It was also argued that the order was passed after an unreasonable delay of more than ten years from the issuance of the show cause notice, rendering it invalid. Reliance was placed on the earlier decision of the Court in Siemens Limited vs State of Maharashtra, which dealt with a similar issue involving delayed adjudication of assessment proceedings.
