Shyam Indus Power Solutions Pvt Ltd. Vs Principal Commissioner CGST Delhi North (Delhi High Court)
Delhi High Court held that matters having financial liabilities or penal consequences cannot be kept unresolved for years. Thus, show cause notice issued in 2013, 2014, 2015, 2016 and 2018 adjudicated vide order issued in 2024 is liable to be quashed.
Facts- The Petitioner herein impugns the Order dated 23.08.2024 passed by the Respondent imposing a service tax liability of Rs. 30,68,03,113/- along with interest and a penalty of Rs. 30,78,71,573/- on the Petitioner. This order dated 23.08.2024 emanates from the Demand-cum-Show Cause Notices dated 10.2013, 21.05.2014, 07.09.2015, 13.10.2016 and 01.03.2018 issued for Financial Years 2008-09 to 2011-12, 2012-13, 2013-14, 2014-15 and 2015-16 to 30.06.2017; and the Petitioner seeks here the quashing of these SCNs as well.
Conclusion- Held that In Vos Technologies India this Court categorically held that matters having financial liabilities or penal consequences cannot be kept unresolved for years; and the phrase “where it is possible to do so” cannot be a license to keep matters pending for years. The flexibility provided by the legislation is not meant to be misused or construed as sanctioning indolence. The statutory leverage cannot be brought into play routinely and in an unfettered manner for years, without any due justification or explanation.
