Order Date – 13 June 2023

Parties: Tata Steel Ltd. (Growth Shop) formerly, ‘Tata Iron and Steel Company Ltd. (Growth Shop)’ Vs Union of India & Others

Facts – 

• The Petitioner, Tata Steel Ltd. (Growth Shop) formerly, ‘Tata Iron and Steel Company Ltd. (Growth Shop)’ was issued a show cause notice of the year 1994 to 1997. On 8.12.2000, the Appeal of the petitioner before the CEGAT was dismissed.
• Against such order the petitioner moved before the Hon'ble Supreme Court and the appeal was partly allowed and remanded the matter back to the Tribunal for fresh examination vide order dated 5.5.2004.
• Thereafter, there has been no adjudication of the show cause notices, Unexpectedly, on 30.11.2022, for the first time, after a lapse of about 28 years, a notice for personal hearing was issued, fixing the date of hearing on 15.12.2022.

Issue – 

• Whether the adjudication of the show cause notice after a lapse of about 28 years is valid?

Order – 

• The Divisional Bench of Hon’ble High Court observed that there is no justification/reasoning either in the counter affidavit or the file notings as to why the show cause notices were taken out of the call book only in November, 2022. There is nothing to indicate any change in circumstances which led to taking out of the cases from the call book.
• The file notings show that though the Commissioner was apprised in 2007 that the issue had attained a finality, still a decision was taken by him on 26.10.2007 to keep the cases in the call book. Mere pendency of another matter before the Tribunal when the issue had attained a finality by the Hon’ble Apex Court, cannot be a reason to keep the SCN in the call book.
• A lapse of 18 years from 2004 to 2022 remains unexplained. Neither is there an explanation for any change of circumstances for taking out the notices from the call book in November 2022. In such circumstances, the SCN and the OIO cannot be countenanced.
• Further no Special Leave Petition has been filed as on date. Even otherwise, mere filing of any Special Leave Petition does not amount to a stay of the order of the High Court. The order of the High Court must be given effect to until and unless the same is stayed by an order of the Hon’ble Supreme Court.
• This Court in W.P.(T) No.308 of 2023 have authoritatively held that adjudication of show cause after 29 years would be contrary to the mandate of Section 11A(11) of the Central Excise Act, 1944 and would lead to unreasonable and arbitrary results.
• Consequently, all these writ applications stand allowed.