DXC Technology India Private Limited Vs Joint Commissioner of GST and Central Excise (Madras High Court)
Madras High Court held that delay of more than 17 years in adjudication of show cause proceeding without justifiable reasons is arbitrary and offending under Article 14 of the Constitution of India. Thus, proceedings are dropped and writ petition is allowed.
Facts- The present petition is preferred by the petitioner. The specific case of the petitioner is that the adjudication of Show Cause Notices long after their issuance is arbitrary and in violation of the principles of natural justice and therefore, the show cause proceedings need not be proceeded further. Notably, the show cause notices were issued in September 2008 and November 2008.
Conclusion- In the case of Sheik Parith, this Court has held that where the period of more than 8 years had lapsed from the issuance of show cause notice and there was no proper or justifiable explanation from the Revenue for the delay in their adjudication, show cause proceedings have to abate.
Held that in the present case also there are no justifiable reasons forthcoming from the Revenue for the delay in adjudication of the show cause proceedings. Thus, the continuation of show cause proceedings long after their issuance have to be held to be arbitrary and offending under Article 14 of the Constitution of India. Therefore, these writ petitions are deserve to be allowed in view of the overwhelming body of decisions of various Courts holding that the proceedings initiated long before cannot be continued after efflux of time.
