TMI Blog2022 (8) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... MI 749 - PUNJAB HARYANA HIGH COURT] , where it was held that it is clear that in Section 11-A(11), the legislature has prescribed a time limit. The Authority(s) are duty bound to abide the same. The expression where it is possible to do so does not mean that the time prescribed can be extended perpetually. The time limit cannot be taken to be directory except in a case where the Authority has a reason to offer as an explanation for extending the said time limit. In the present case, no explanation has been offered in the written statement which can be held to be a plausible explanation for not adjudicating upon the Show Cause Notice within the time prescribed. In the facts of the present case the impugned show cause notices were issued in the year 2008. The same have not been adjudicated upon and the only explanation coming forth in the written statement is that the matter had been transferred to the Call Book as per CVIC guidelines issued from time to time. There are no cogent basis or legal impediment has been offered which may be construed to be a plausible explanation for not adjudicating upon the show cause notices within the time prescribed. In view of the above a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use notice(s), the notice should be pending adjudication on 30.06.2019. As the impugned show cause notices at Annexures P-2 and P-3 were pending adjudication as on 30.06.2019, petitioner in order to settle proceedings filed two declarations under Section 124(1)(a)(ii) of the SV Scheme both dated 23.12.2019. Petitioner treated the amount paid (by way of reversal of the Cenvat Credit) at the rate of 10% of the exempted goods under Rule 6 of the Credit Rules as an amount to be adjusted while calculating the total amount under the SV Scheme. The 2nd respondent i.e. the Designated Committee, Central Goods and Service Tax Commissionerate, Ludhiana disagreed with the petitioner's computation disallowing the deduction of the amount already paid by reversal of the Cenvat Credit under Rule 6 of the Credit Rules. It is the case of the petitioner that the amounts already paid were liable to be adjusted while payment of 50% of the tax dues in terms of Section 124(2). We have heard counsel for the parties and have perused the pleadings on record. During the course of hearing learned counsel representing the petitioner has pressed for the alternate prayer of setting aside of the impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount actually payable in the manner specified under that subsection and the period of one year shall be computed from the date of receipt of information under sub-section (2). (4) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded,by the reason of- (a) fraud; or (b) collusion; or (c) any wilful mis-statement; or (d) suppression of facts; or (e) contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, by any person chargeable with the duty, the Central Excise Officer shall, within five years from the relevant date, serve notice on such person requiring him to show cause why he should not pay the amount specified in the notice along with interest payable thereon under section 11AA and a penalty equivalent to the duty specified in the notice. ((5) to (7) xx xx xx) (7A) Notwithstanding anything contained in sub-section (1) or sub-section (3) or sub-section (4), the Central Excise Officer may, serve, subsequent to any notice or notices served under any of those sub-sections, as the case may be, a statem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2017 (352) E.L.T. 455' has held that :- 14. In the aforesaid case, Gujarat High Court had set aside the order passed after a long delay in pursuance to the show cause notice issued. 15. The judgment of Gujarat High Court was challenged by the revenue before Hon'ble the Supreme Court by filing Special Leave Petition (C) No. 18214 of 2017 Union of India and others vs M/s Siddhi Vinayak Syntex Private Limited, in which notice has been issued only to the extent as to whether Circular No. 162/73/95-CX dated 14.12.1995, issued by the Central Board of Excise and Customs, Department of Revenue, Ministry of Finance, Government of India, is in conformity/ authorized by the provisions of Section 37-B of the Central Excise Act, 1944. The order on merit has been upheld vide order dated 28.7.2017. 16. The view expressed in M/s Siddhi Vinayak Syntex Private Limited's case (supra) was subsequently followed by Gujarat High Court in Parimal Textiles' case (supra), where again belated order passed after issuing show cause notice, was set aside. 17. Section 11A(11) of the Act provides that Central Excise Officer shall determine the amount of duty within six ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igarh' has already dealt with the aforesaid issue holding that :- With regard to filing of the appeal before the Jammu Kashmir High Court against order dated 28.08.2018 passed by CESTAT, Chandigarh pertaining to supplier of the petitioners (purchaser), it is held that it would have no bearing upon the findings recorded above, keeping in view the peculiar facts circumstances of the case and law laid down referred to above. Moreover, the Jammu Kashmir High Court has not granted any interim order in favour of the respondent(s)/ Revenue on the appeal filed after 1 year of passing of order of the Tribunal in case of supplier (seller) of goods to the petitioner (purchasers). 15. Thus, keeping in view the aforesaid position of law, the present writ petitions are allowed. Show Cause Notices Annexure P-1 (in all writ petitions) impugned in the present writ petitions, issued to the petitioners more than 11 years ago, are hereby quashed. 16. Ordered accordingly. (AJAY TEWARI) JUDGE (PANKAJ JAIN) JUDGE In the facts of the present case the impugned show cause notices were issued in the year 2008. The same have not been adjudicated upon and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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