Reasonable time in fiscal adjudication: prolonged call book pendency and lack of lawful justification led to quashing of proceedings.

Prolonged pendency of fiscal adjudication proceedings, including transfer of the show cause notice to the call book without effective conclusion, was treated as fatal where no lawful justification for the delay was shown. The Court applied the principle that adjudication affecting fiscal liability must be concluded with due expedition and within a reasonable time, and that call book placement cannot authorise indefinite inaction. It also noted the need for noticees to be informed of call book transfer and for pending matters to be periodically reviewed. On these facts, the final adjudication order and the show cause notice proceedings were quashed.

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Issues: Whether the prolonged pendency of the adjudication proceedings and placement of the show cause notice in the call book without effective conclusion vitiated the proceedings and justified quashing of the final adjudication order and the show cause notice.

Analysis: The proceedings had remained pending for an inordinately long period, and the explanation based on repeated adjournments and call book placement was not accepted as sufficient justification. The legal position applied was that adjudication proceedings involving fiscal liability must be concluded with due expedition and within a reasonable time, and that call book placement cannot operate as a licence for indefinite pendency. The Court also relied on the requirement that noticees be informed of call book transfer and that pending matters be periodically reviewed, and held that the respondents failed to show any legally sustainable constraint preventing timely adjudication.

Conclusion: The delay and manner in which the proceedings were kept pending rendered the adjudication unsustainable, and the final adjudication order as well as the show cause notice proceedings were quashed in favour of the assessee.

Ratio Decidendi: Where fiscal adjudication is kept pending for an unreasonable period without lawful justification, with call book treatment lacking proper notice and periodic review, the proceedings are liable to be quashed for failure to conclude them within a reasonable time.

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