Show Cause Notices needs to be adjudicated within Logical End and Reasonable Time

Are you still showing Contingent Liabilities for Show Cause notices received long back but not yet adjudicated by Tax Authorities, here is good news,?Bombay High Court Set Aside 15-year-old SCN saying Tax Authorities are Duty Bound To Take Show- Cause Notice To Logical End Within Reasonable Time.

The authorities had issued a show cause notice against M/s. Bombay Dyeing on January 5, 2007, but a notice for hearing on the show-cause notice was issued after over 14 years. Bombay Dyeing sent its response to the authorities within four weeks and upon receiving no communication from the authorities, filed a petition in HC in March last year against the Deputy Commissioner of CGST & CX, Div-IX, Mumbai Central GST Commissioner.

This Court in the said judgement held that when a show-cause notice is issued to a party, it is expected that the same would be taken to its logical consequences within a reasonable period so that a finality is reached. Also mention that it is not expected from the assessee to preserve the evidence/record intact for such a long period to be produced at the time of hearing of the Show-Cause Notice.

?Detailed judgement is attached for your kind reference.?

https://www.livelaw.in/news-updates/bombay-high-court-show-cause-notice-tax-authorities-evidence-192362#.YhJLXw3FVT8.whatsapp