Order Date – 05 June 2023

Parties: M/s. Sudera Realty Private Limited Vs Union of India & Ors.

Facts – 

• The Petitioner, M/s. Sudera Realty Private Limited, was issued with a show-cause-cum-demand notice dated 23rd December, 2020, under Section 73 of the Finance Act, 1994 read with Section 174 of the CGST Act, 2017.
• The petitioner has filed its reply against the show-cause-notice on 5th February, 2021, but till date it is pending final disbursement.

Issue – 

• Whether the conduct of the authorities is justifiable?

Order –

• The Single Bench of Hon’ble High court observed that the conduct of the Commissioner of CGST and CX, Kolkata South Commissionerate, for his lethargic attitude in sitting over the reply to the impugned show-cause-notice and not disposing of the same till date for the reasoned best known to him and allowing the impugned proceeding to become time barred for the benefit of the petitioner and to harm the interest of the revenue. Such conduct of the Commissioner concerned is highly depreciable. 
• There is a serious lapse on the part of the petitioner also in challenging the impugned show- cause-notice after the expiry of 2 years and 4 months. If according to the petitioner the impugned show- cause-notice was without jurisdiction or bad in law it could have challenged the same immediately instead of waiting for so long in approaching this writ court.
• This will allow the petitioner to take advantage of the conduct of authorities by allowing the impugned proceedings to become time barred as alleged by the petitioner, hence the writ petition is disposed of.
• Dismissal of this writ petition will not be a bar on the part of the Commissioner concerned to dispose of the pending show-cause-notice in accordance with law and by passing a reasoned and speaking order after giving an opportunity of hearing to the petitioner or its authorised representative within a period of four weeks from the date of communication of this order.

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