“Instead of issuing SCN for Imposing penalty Under APVAT Act, Revenue wasted six years in litigation”: Supreme Court

The Supreme Court criticized the revenue authorities for wasting six years in litigation over imposing a penalty under the APVAT Act instead of issuing a show-cause notice (SCN). The Court highlighted that the delay could have been avoided if the correct procedural steps had been followed at the outset. It underlined the importance of timely and efficient handling of tax matters to avoid prolonged litigation. The case involved an assessment where the department failed to issue an SCN but instead chose to pursue legal proceedings, ultimately leading to unnecessary delays. The Court’s decision emphasized the need for the revenue authorities to adhere to the proper legal procedures and act promptly in resolving tax matters to ensure efficiency in the tax system.