Case Law Details
Suparshva Swabs (I) Vs National Faceless Appeal Centre & Ors. (Delhi High Court)
The Delhi High Court has raised concerns over the significant delay in disposing of tax appeals before the National Faceless Appeal Centre (NFAC), directing that a long-pending appeal filed by Suparshva Swabs (I) on October 14, 2022, be resolved within eight weeks. The ruling came in response to a writ petition seeking time-bound resolution of appeals, along with guidelines to prevent taxpayer harassment and potential compensatory costs for excessive delays.
The NFAC, set up to ensure swift and transparent resolution of tax appeals, has accumulated a backlog of over 5.49 lakh appeals, as acknowledged by government counsel Sunil Agarwal during the hearing. The Central Action Plan 2024-25 outlines a roadmap to clear these appeals, which the court has taken on record. However, the Delhi HC expressed concern that despite the NFAC’s objective, cases like the petitioner’s remain unresolved for over two years, defeating the purpose of the faceless adjudication framework.
Judicial precedents emphasize the right to a timely appeal resolution as a fundamental aspect of tax administration. In Vodafone Idea Ltd. v. DCIT (Bombay HC, 2021) and Shravan Gupta v. CIT (Delhi HC, 2022), courts underscored that undue delays in tax adjudication violate the principle of fairness under Article 14 of the Constitution. The Delhi HC’s present ruling aligns with these precedents, reinforcing the obligation of tax authorities to ensure timely case disposal.
The court directed that the petitioner’s appeal (e-filing acknowledgment No. 723125090141022) be adjudicated within eight weeks, setting a precedent for addressing pending appeals expeditiously. While acknowledging NFAC’s backlog, the bench stressed the importance of efficient execution, urging authorities to adhere to their proposed remedial measures. This ruling highlights the challenges in faceless tax administration and the need for systemic improvements to prevent prolonged litigation and taxpayer inconvenience.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
Delhi High Court Expresses Concern Over Delay In Disposal Of Matters Before National Faceless Appeal Centre Present writ petition has been filed, inter alia, seeking the following prayers:-
“a) To issue an appropriate writ, order, or direction to Respondent No.1 directing it that the Petitioner’s Appeal filed on 14.10.2022, which is pending for more than 2 years before the CIT(A), be decided within a period of 4 to 8 weeks;
b) To issue guidelines for disposal of pending Appeals and prevent harassment caused to the taxpayers;
c) To grant interest and compensatory cost in light of the gross delay of over 2 years in not deciding the appeal filed on 14.10.2022; and/or
d) To grant costs of this Petition; and/or
Pass such other order(s) as the Hon’ble Court may deem fit and proper in the facts and circumstances of the case and in the interest of justice.”
2. Sunil Agarwal, learned Senior Standing Counsel has handed over the bench, a roadmap drawn by the National Faceless Appeal Centre (hereafter referred as “NFAC”) to dispose of pending appeals to the tune of 5,49,042 appeals, in a time bound manner as per the Central Action Plan 2024-25. The same is taken on record.
3. This court is cognizant of the large number of statutory appeals pending for disposal before the NFAC and express concern over the delay in disposal of such appeals, for which the NFAC was envisaged. We expect that the NFAC would endeavour to implement the said remedial measures in all earnest.
4. So far as the present petition is concerned, we note with some concern that the appeal filed on 14.10.2022, is still pending adjudication for more than 2 years before the CIT(A).
5. We, therefore direct the said appeal filed on 14.10.2022 under e-filing acknowledgment no.723125090141022 be taken up for consideration and disposed of with expedition not beyond a period of eight weeks from date.
In view of the aforesaid, the present petition stands disposed of alongwith the pending application.
Author Bio
