In Writ Petition No. 3063 of 2021 -BOM HC- Bombay High Court rebukes Central Excise Commissioner's delayed adjudication of show cause notice
Justice G.S. Kulkarni & Justice Jitendra Jain [22-08-2023]

Read Order: UPL Limited v. The Union of India and Ors

Chahat Varma

New Delhi, August 31, 2023: In a relief to UPL Limited (petitioner), the Bombay High Court has quashed the delayed adjudication of a show cause notice issued by the Commissioner of Central Excise. The Court held that the Commissioner's inaction was in violation of the law and had adversely affected the petitioner's interests.

The present writ petition before the court had brought attention to the delayed adjudication of a show cause notice issued 13 years ago by the Commissioner of Central Excise. The petitioner sought to have the Commissioner's approach quashed and set aside, citing that such prolonged delay goes against legal provisions.

The division bench of Justice G.S. Kulkarni and Justice Jitendra Jain observed that the reply affidavit to the petition had been filed by the Deputy Commissioner of CGST & Central Excise, Division-IV, Mumbai. The bench expressed its surprise over the Commissioner's absence and questioned why the Commissioner, who was fully aware of the proceedings related to the show cause notice, had not responded to the petition.

The bench expressed the need for the Ministry of Finance to address the concerning behaviour of officers who were failing to perform their essential duties diligently.

The bench strongly criticized the lackadaisical approach of the concerned officer in failing to adjudicate a show cause notice within the legally stipulated time frame. The bench stated that such behaviour contradicts the law and goes against the officer's duty to uphold legal mandates. Stressing the significance of these issues on public revenue, the bench noted that the inaction of such officers negatively impacts revenue interests. Additionally, the bench highlighted that delayed adjudication could lead to irreversible changes that undermine the entire adjudication process.

Further, the bench noted that in the present case, there was no evidence or material available on record that could substantiate the non-adjudication of the show cause notice due to legitimate and justifiable reasons.

In the light of the above discussion, the bench was convinced that the petition be allowed.