Timely adjudication of objections under tax law is mandatory; inaction constitutes a failure of duty, merits judicial intervention, and necessitates reforms for efficiency.

JUDGMENT

Rajiv Shakdher, J. (Oral)--Issue notice.

1.1. Mr. Satyakam accepts notice on behalf of the respondents/revenue.

2. With the consent of the counsel of the parties, the writ petition is taken up for hearing and final disposal, at this stage itself.

3. The principal grievance of the petitioner is that the objections filed in the matter to the notice of default assessment of tax, interest and penalty issued under Section 32 of the Delhi Value Added Tax Act, 2004 [in short "the Act"], have not been adjudicated upon, up until now.

3.1. The petitioner, in this context, has drawn our attention to the communication sent to the respondents for adjudication of the objections preferred against the notice issued under Section 32 of the Act.

4. The record shows that notice under Section 32 of the Act was issued on 28.09.2017, concerning the fourth quarter of the financial year (FY) 2013-14.

4.1. The aforesaid notice pegged the tax at Rs.16,58,005/-.

4.2. The record also shows that the objections to the aforesaid notice were filed by the petitioner under Section 74 of the Act on 20.06.2014. The reminder qua disposal of the same appear to have been sent on 18.12.2021. As a matter of fact, the petitioner had drawn attention of the respondents/revenue to sub-sections (7) and (8) of Section 74 of the Act.

4.3. Furthermore, counsel for the petitioner has drawn our attention to Section 74(9) of the Act.

4.4. Concededly, there has been no movement in the matter.

5. Mr Satyakam does not dispute that the aforementioned provisions of the Act, set out strict timelines for disposal of the objections.

5.1. A perusal of sub-section (7) of Section 74 of the Act would show that the objections have to be decided, within three months, after the receipt of the objections.

5.2. As per sub-section (8) of Section 74 of the Act, in case objections are not decided within three months, the assessee is entitled to serve upon the Commissioner a written notice requiring him to take a decision within the next fifteen days.

5.3. Sub-section (9) of Section 74 of the Act is indicative of the fact that, if at the end of fifteen days of such notice being served, a decision is not taken by the Commissioner, the objections filed are deemed as having been allowed.

6. It is the contention of Mr Satyakam that the notice under sub-section (8) of Section 74 should be issued in the prescribed Form i.e., Form DVAT-41.

6.1. Mr. Satyakam says that in terms of Rule 56 of the Delhi Value Added Tax Rules, 2005 [in short, "the 2005 Rules"], the said notice had to be personally served on the Commissioner.

6.2. It is Mr. Satyakam's contention that there was neither any service effected on the Commissioner personally, nor was the signatory of the said notice an authorized representative of the assessee.

7. Having heard the learned counsel for the parties, we are of the view that there is complete sloth and procrastination on the part of the respondents/revenue.

7.1. The spirit of the law has, certainly, not been adhered to.

7.2. According to us, while Mr Satyakam may have a talking point as to the mechanics set forth in the Act for service of notice under sub-section (8) of Section 74 of the Act, there is certainly an unpardonable delay on the part of the respondents in dealing with the objections; eight years is too long a time for the respondents to not have moved the matter.

8. That being said, if we were to ascertain as to whether the concerned Commissioner had knowledge of the communications sent by the petitioner, it would only delay the matter further.

8.1. In our view, the resp