Kamaladitya Construction (P) Ltd. vs. The Principal Commissioner of Central Goods and Service Tax and Central Excise and Ors. - (High Court of Jharkhand) (09 Oct 2023)

Adjudication of show cause notices must be completed within a reasonable time frame, unless an extraordinary situation arises beyond the control of adjudicating authority

MANU/JH/1346/2023

Limitation

The Petitioner in the present writ application is challenging the legality and validity of the impugned show cause notice dated 24th December, 2014, issued by the Respondent No.2 in purported exercise of powers under proviso to Section 73(1) of the erstwhile Chapter V of the Finance Act, 1994mainly on grounds of delayed adjudication after lapse of more than 7 years which is contrary to provisions of Sub-section (4B) of Section 73 of erstwhile Chapter V of the Finance Act, 1994 and also beyond the reasonable period of limitation and which offends Article 14 of the Constitution of India being arbitrary and unreasonable.

It further transpires that Section 73(4B) provides for determination of service tax liability and adjudication of the show cause notices within period of six months, "where it is possible to do so" in case where the show cause notice is issued under the main section 73(1) involving no suppression of facts etc. and within a period of one year where the show cause notice is issued under proviso to Section 73(1) of Chapter V of the Finance Act, 1994, where it is possible to do so.

The outer limits fixed by the Legislature under Sub-Section (4B) of Section 73 of Chapter V of the Finance Act,1994 is not without a purpose but manifests the legislative intent and declares the legislative policy that the adjudication of the show cause notices must be completed within a reasonable time frame set out under Section 73(4B) unless an extra ordinary situation arises beyond the control of the adjudicating authority and it can never be kept pending for an indefinite period or sine die.

It is settled presumption of law that the Legislature does not waste words or say anything in vain. Each word in the enactment must be allowed to play its role, however, significant or insignificant the same may be in achieving legislative intent and promoting the legislative object. The statute has to be so construed that every word has a place and everything is in place. The impugned show-cause notice dated 24th December, 2014 (Annexure-1) and impugned notice dated 6th June, 2022 (Annexure-2) are quashed and set aside. Application allowed.

Tags : NOTICE ISSUANCE TIME PERIOD