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Should the Proceedings need to be concluded within reasonable period or because notice is served within time limit Department can pass Order without any time frame?
The point of "Reasonable Period" was before Bombay High Court and High Court was not impressed with the Department
Facts and Timelines:
Petitioner was holding separate Service tax registrations.
12-Oct-2009: Show Cause cum Demand Notice was issued by the Commissioner of Service Tax, Delhi pursuant to an audit conducted for the period 2004-05 to 2007-08.
30-Dec-2009: Reply was filed.
9-Sep-2010: The Petitioner obtained Centralized Service Tax Registration at Mumbai.
8-May-2013: This was intimated to Department with a request to transfer the case files to Mumbai. But, despite all this, no steps were taken to transfer the files or to adjudicate the subject
show cause cum demand notice for several years.
Thereafter, after a period of seven years from the date of communication of centralized registration, vide letter dated 3 August 2020, 10 August 2020 and 24 August 2020, the Petitioner was called for personal hearing in respect
of the subject show cause cum demand notice.
High Court held
The impugned show cause cum demand notice dated 12 October 2009 cannot be carried forward after such an inordinate delay.
High Court relied on these decisions Parle International Ltd. vs. Union of India, (2021) 375 ELT 633 (Bom.) and Sushitex Exports (India) Ltd, (2022) 380 ELT 244 (Bom.) where it was held that proceedings should be concluded within a reasonable period and
proceedings that are not concluded within a reasonable period, which the Court on the facts of each case has to consider, may not be allowed to be proceeded further.
Title: CMA-CGM Agencies (India) Pvt. Ltd vs Union of India
Court: Bombay High Court
Citation: Writ Petition 1313 of 2021 (Civil Appeal)
Dated: 17-Jan-2023
GST Laws are better in terms of timelines as they have timelines for both Service of Notice and Service of Order (33/36 and 54/60 months)