Prolonged non-adjudication vitiates fiscal proceedings, leading to quashing of the notice and consequential order.

Fiscal adjudication cannot remain in abeyance for years without legally sustainable justification, and prolonged unexplained non-adjudication can itself vitiate the proceedings. Here, the record showed no stay of adjudication, yet the authority deferred the matter for an extended period without due expedition. On that basis, the show cause notice and all consequential proceedings, including the order-in-original, were quashed.

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Issues: Whether the show cause notice dated 26 September 2008 and the consequent order-in-original dated 28 February 2019, both passed after prolonged inaction and unjustified deferment of adjudication, were liable to be quashed.

Analysis: The petition had remained pending for years, and the record showed that there was no stay of adjudication granted by the Court. The adjudicating authority nevertheless kept the proceedings in abeyance and failed to conclude them with due expedition. The Court applied the principle that fiscal adjudication cannot be left unresolved for years without a legally sustainable justification, and that prolonged non-adjudication itself vitiates the proceedings. In the circumstances, the delay was found unexplained and the subsequent order-in-original could not survive once the foundation notice was liable to be set aside.

Conclusion: The show cause notice and all consequential proceedings, including the order-in-original, were quashed in favour of the petitioner.

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