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2023 (4) TMI 773 - HC - Service TaxBelated adjudication of SCN after a gap to 13 years - Time Limitation - whether the respondents can continue the proceedings for adjudication of the impugned show cause notice, after the lapse of almost thirteen years? - HELD THAT:- Section 73 of the Act, as in force at the material time, did not stipulate any time period. However, by virtue of the Finance (No.2) Act, 2014, sub-section (4B) was introduced in Section 73 of the Act which stipulates that where it is possible to pass an order, the Central Excise Officer would determine the amount of service tax within a period of one year in respect of cases falling under the proviso to sub-section (1) or the proviso to sub-section (4A), and within a period of six months from the date of notice in cases falling under Section 73(1) of the Act - It is settled law that where there is no period stipulated for exercising jurisdiction, the same must be done within a reasonable period. Section 73 of the Act, as in force at the material time, did not stipulate any period within which the show cause notice was required to be adjudicated. It merely stipulated the period within which the show cause notice was required to be issued. However, there is no cavil that the authority conferred with the jurisdiction is required to exercise the same within a reasonable period - In the facts of the present case, it is not necessary for this Court to examine the validity of the procedure of placing the matter in the ‘Call Book’ as it is apparent that there is a gross delay on the part of respondent no. 1 and there are no justified reasons for the same. In Sanghvi Reconditioners Pvt. Ltd. v. Union of India through the Secretary, Department of Revenue & Ors. [2017 (12) TMI 906 - BOMBAY HIGH COURT], the Court had observed that the larger public interest requires that the Revenue and its officials adjudicate the show cause notice expeditiously and within a reasonable time. The Court had further observed that “the term ‘reasonable time’ is flexible enough and would depend upon the facts and circumstances of each case”. However, there was no justification for not adjudicating the notice for more than fifteen years after its issuance. The Court had also highlighted that it is necessary for the Revenue to inform the assessee that the show cause notice has been kept in abeyance, otherwise there would be no necessity for the assessee to preserve the record for the inordinately long period. It is thus concluded that the proceedings pursuant to the impugned show cause notice are inordinately delayed and it is now impermissible for the respondents to continue the same. The respondents are, accordingly, interdicted from taking any action or continuing any proceedings pursuant to the impugned show cause notice. - petition allowed.
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