High Court quashes 25-year-old show cause notice, orders refund with interest

The High Court of Bombay allowed the petition, quashed the show cause notice issued 25 years ago by the Commissioner, Central Excise, Mumbai-III, and directed the respondents to refund the deposited amount of INR 10,69,666 with interest. The court cited legal precedents and emphasized that the prolonged delay in adjudication rendered the notice illegal, ruling in favor of the petitioner without imposing costs.

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Issues Involved:
- Delay in adjudication of a show cause notice issued 25 years back.
- Request for quashing and setting aside the show cause notice.
- Request for refund of INR 10,69,666 deposited under protest during the investigation.

Summary:
The High Court of Bombay heard a writ petition under Article 226 of the Constitution concerning the quashing of a show cause notice issued by the Commissioner, Central Excise, Mumbai-III, approximately 25 years ago. The petitioner sought the issuance of a Writ of Certiorari to review the records and quash the impugned notice, along with a refund of the deposited amount with interest. The petitioner argued that due to the prolonged delay in adjudication, the notice should be set aside. The respondent, unable to locate the case papers, acknowledged the difficulty in proceeding with the adjudication. Citing various legal precedents, including ATA Freight Line (I) Pvt. Ltd. vs. Union of India & Ors., the court agreed with the petitioner's stance. Referring to the decision in Premier Ltd. Vs. Union of India, the court emphasized that the failure to adjudicate the notice for such an extended period was illegal. Consequently, the court allowed the petition, quashed the show cause notice, and directed the respondents to refund the deposited amount with interest, in line with the petitioner's requests. The court made the rule absolute in favor of the petitioner, without imposing any costs.

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