HC quashes SCN issued after decades; Criticizes Liberal adjournments

In the present case, we find that the petitioners’ argument is that it is impossible for them to remember what was the issue and some decades back, what are the records on which it is based and how it is to be presented. Possibly all the  records with them are destroyed or the units having been re­arranged, it is impossible for them to re­trace the records for want of staff and resources. In the circumstances, we do not think that the petitioners should be denied the relief.

Liberal adjournments do not serve any purpose but would rather defeat public interest

HC held that if the understanding of the Revenue is that it has to wait endlessly for the assessee to appear and make submissions, it is not the assessee’s right to delay the matter. There is no vested right  in prolonging the proceedings and none can claim that the law permits this course. Adjournments may be sought frequently but they are not to be granted liberally. That gives impression that the Revenue is not interested in proceeding with the matter, or rather has a vested interest in assisting the assessee.

It further held that once the assessee is given sufficient opportunity to remain present, to argue his case, either by himself or with the assistance of an Advocate, then, the Revenue would be justified, if the assessee is prolonging the matter and deliberately, to pass orders in his absence. These orders can be then passed on merits and none can complain that he was  not aware of or was denied the opportunity to defend himself. The principles of natural justice are not codified. They only contemplate that opportunity to defend has to be granted in the event an adverse order having civil consequences has to be passed. Therefore, the quasi­judicial authorities should realise that they need not be friendly or liberal with the  assessee and to such an extent as would give an opportunity to the assessee to complain that the Show Cause Notice having been issued decades back, it cannot be adjudicated.