2023 (6) TMI 630 - CALCUTTA HIGH COURT

Validity of Show Cause Notice (SCN) - Validity challenged after the expiry of 2 years and 4 months - Inordinate delay in adjudicating the SCN - Section 73 of the Finance Act, 1994 read with Section 174 of the CGST Act, 2017 - HELD THAT:- I am constrained to observe the conduct of the Commissioner of CGST and CX, Kolkata South Commissionerate, for his lethargic attitude in sitting over the reply to the impugned show-cause-notice and not disposing of the same till date for the reasoned best known to him and allowing the impugned proceeding to become time barred for the benefit of the petitioner and to harm the interest of the revenue. Such conduct of the Commissioner concerned is highly deprecable.

There is a serious lapses on the part of the petitioner also in challenging the impugned showcause- notice after the expiry of 2 years and 4 months. If according to the petitioner the impugned showcause- notice was without jurisdiction or bad in law it could have challenged the same immediately instead of waiting for so long in approaching this writ court.

Considering the conduct of the petitioner in approaching this writ court after an inordinate delay and making attempt to take advantage of lapse of the the Commissioner concerned in not finally adjudicating the impugned show-cause-notice and allowing the petitioner to take advantage of his conduct by allowing the impugned proceedings to become time barred as alleged by the petitioner, this writ petition is dismissed.

However, dismissal of this writ petition will not be a bar on the part of the Commissioner concerned to dispose of the pending show-cause-notice in accordance with law and by passing a reasoned and speaking order after giving an opportunity of hearing to the petitioner or its authorised representative within a period of four weeks from the date of communication of this order.