Bombay High Court asks Union Finance Ministry to take action against officers who delay decisions on show cause notices

The Bombay High Court recently took critical note of cases where show-cause notices issued to citizens under Central Acts by officers of the Central government are not taken forward for years..While deprecating this trend, the Court has called upon the Union Ministry of Finance to take action against such officers who are not diligently discharging their duties..A Bench of Justices GS Kulkarni and Jitendra Jain took judicial notice of various petitions before the Court where officers were seen failing to act on show cause notices issued as far back as 10 years ago.“In our opinion, a serious view in this regard is required to be taken by the Ministry of Finance in regard to the officers who are not diligently discharging such vital duties and who in fact are playing with the public revenue,” the order stated..The Court made the observation while allowing a petition that challenged a show cause notice issued 13 years back, on October 21, 2010.It recounted that in an earlier order dated July 25, 2023, the Court observed that such a lethargic approach of officers to adjudicate on a show-cause notice within a time frame would affect the interest of the revenue..The Bench thus directed the Union Ministry of Law and Justice to forward a copy of both orders to the Secretary of the Finance Ministry.“We are of the opinion that a copy of these judgements should be forwarded to the secretary in the Ministry of Finance, to appraise him of a legal approach to be adopted by the adjudicating officers, who are vested with such substantial powers of issuing show cause notices and who are dealing with public revenue, so that a robust approach can be adopted in effectively adjudicating the show cause notices, unless such mechanism already exists. We will be failing in our duty if we do not request the Finance Secretary to look into such issues," the order stated..The Court was hearing a petition filed by a company, UPL Limited, which claimed that there were serious lapses on the part of the Commissioner of the Central Goods and Services Tax in issuing the show cause notice under challenge. It was noted from the reply of the tax authorities that such delay could not be justified.In view of this, the Court quashed the show cause notice and allowed the plea. .Advocates Prakash Shah, Jas Sanghavi and Yash Prakash, briefed by PDS Legal, appeared for the petitioner. Advocate Ram Ochani appeared for the respondent authorities..[Read order]