Inordinate delay in tax show cause adjudication can be arbitrary and violate equality, justifying quashing of proceedings.

Prolonged and unexplained non-adjudication of tax show cause notices can render the proceedings arbitrary and unsustainable. The High Court noted that the notices had remained pending for more than 17 years, that departmental circulars required expeditious adjudication, and that transfer to the call book did not justify indefinite delay. Applying authorities on inordinate delay in tax adjudication, the Court held that continued pendency offended Article 14 and that the notices were liable to be set aside.

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Issues: Whether prolonged and unexplained non-adjudication of the show cause notices rendered the continuation of the proceedings arbitrary and liable to be quashed.

Analysis: The writ petitions challenged show cause notices issued in 2008, with adjudication remaining pending for more than 17 years. The Court noted the departmental circulars requiring expeditious adjudication of show cause proceedings and the absence of any justifiable explanation from the Revenue for the extraordinary delay. The transfer of the matters to the call book did not supply a valid justification for keeping the proceedings pending indefinitely. Relying on the line of authorities holding that inordinate and unexplained delay in adjudication of tax show cause notices is arbitrary, the Court held that such continued pendency offends the guarantee of equality.

Conclusion: The delay in adjudication made the continuation of the proceedings arbitrary and contrary to Article 14 of the Constitution of India, and the show cause notices were liable to be set aside.

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