Natural justice limits revival of long-dormant show cause notices kept in the call book without assessees' intimation.

A long-pending show cause notice kept in the call book without intimation to the assessee cannot be revived after an inordinate delay of about 14 to 17 years without offending natural justice and procedural fairness. The Revenue must communicate transfer to the call book, because absent such notice the assessee may reasonably assume the proceedings were abandoned. Where delay is not attributable to the assessee, revival can prejudice the defence as records may no longer be available. A later departmental circular requiring formal communication of call-book transfer reinforced this obligation, and the belated revival and hearing notices were quashed.

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Issues: Whether adjudication could be commenced on long-pending show cause notices after a delay of about 14 to 17 years, when the notices had been kept in the call book without any intimation to the assessee.

Analysis: A proceeding may be kept in abeyance to avoid multiplicity, but where the Revenue itself transfers notices to the call book, it must communicate that position to the assessee. In the absence of such intimation, the assessee may reasonably proceed on the footing that the notices have been abandoned. Commencing adjudication after an inordinate delay, without fault on the assessee's part, causes prejudice because records may no longer be available and the defence may be impaired. The requirement to act within a reasonable period is an aspect of natural justice and procedural fairness. The later departmental circular requiring formal communication of transfer to the call book reinforced this obligation.

Conclusion: The revival of the show cause notices and the hearing notices issued after the long delay were unjustified and were quashed.

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