Petition dismissed on 13-year delay; appeal under Section 35B of Excise Act, 1944 is the proper remedy

The HC dismissed the petition challenging a 13-year delay in adjudicating the show cause notice, noting the petitioner had actively participated in proceedings and raised merit-based grounds. The court held that the delay issue could be addressed in an appeal under section 35B of the Excise Act, 1944, which provides an appellate remedy before the Tribunal. No breach of natural justice principles was found. The petitioner was directed to pursue the remedy of appeal under the statute.

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Issues:
The issues involved in the judgment are the demand of service tax against two parties, the delay in adjudication proceedings, and the consideration of defense submissions.

Demand of Service Tax:
The Petitioner, a company engaged in oil and gas exploration, entered into contracts with Respondent No.3 for survey and exploration services. A show cause notice was issued for a demand of service tax against ONGC and CGG Marine. The order confirmed the demand against ONGC but dropped it against CGG Marine. Respondent No.3 had charged and deposited service tax, as stated in their reply.

Delay in Adjudication Proceedings:
The Petitioner participated in the adjudication proceedings over the years, with hearings and submissions. The Petitioner raised concerns about the 13-year delay in adjudication, stating it deprived them of the opportunity to explain and defend their case. The impugned order was passed after a long delay, leading to the petition to quash it.

Consideration of Defense Submissions:
The Respondents argued that the Petitioner's submissions were considered in the impugned order-in-original, despite the delay. The Respondents contended that the order was reasoned, and the Petitioner had the chance to defend themselves. It was suggested that the Petitioner could raise their contentions in an appeal under section 35B of the Excise Act, 1944. The court noted that the Petitioner participated in the adjudication proceedings and could pursue remedies through the appellate process. The court dismissed the petition, allowing the Petitioner to appeal to the Tribunal.

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