Reasonable-time requirement in excise adjudication: stale show cause notices kept in the call book were quashed after inordinate delay.

Quasi-judicial excise adjudication under Section 11A of the Central Excise Act must proceed within the statutory framework and, as far as possible, within a reasonable time. Keeping show cause notices dormant in the call book for years without a legally sustainable basis, then reviving them after an inordinate delay, is unlawful where the delay is caused by extraneous considerations and prejudices the assessee. The absence of notice about call book transfer and the resulting loss of material and witnesses reinforced the prejudice. The delayed revival of the notices was therefore held arbitrary and the proceedings were quashed.

---

---

Issues: Whether prolonged dormancy of show cause notices by transferring them to the call book and reviving them after about thirteen to seventeen years for personal hearing was unlawful and vitiated the adjudication.

Analysis: The proceedings arose under Section 11A of the Central Excise Act, 1944, which governs adjudication of duty demands as quasi-judicial proceedings. The Court followed its earlier view that adjudication must proceed within the statutory framework and, as far as possible, within a reasonable time. It held that keeping matters in the call book for years together is not justified by any impediment inherent in the proceedings, but by extraneous considerations. The Court also accepted that the department had not informed the petitioners about the call book transfer and that the long delay caused serious prejudice because the businesses had closed and the relevant material and witnesses were likely unavailable.

Conclusion: The delayed revival of the show cause notices was held unlawful and arbitrary, and the impugned notices were quashed in favour of the assessees.

Final Conclusion: The petitions were allowed and the department was not permitted to pursue adjudication on stale show cause notices kept pending in the call book for an inordinate period.

Ratio Decidendi: Where quasi-judicial excise adjudication is kept dormant in the call book for years without a legally sustainable basis and is revived after an inordinate delay causing prejudice, the proceedings are vitiated as contrary to the statutory mandate and the requirement of decision within a reasonable time.

---