'Patience Of This Court Is Now Wearing Thin' : Supreme Court Pulls Up Centre For Not Submitting Proposal To Monitor Litigation In Revenue Matters

The patience of this Court is now wearing thin by the failure of the Union Government to come forward with any concrete response,  the Supreme Court remarked while directing the Central Government to submit a concrete plan of action for monitoring the litigation in revenue matters.

The bench of Justices DY Chandrachud and MR Shah observed that proposal for adopting a technology based solution for monitoring revenue proceedings and litigation at all levels will ultimately subserve the legitimate interests of the Revenue.

On 10th February, while considering a special leave petition filed by revenue department, the court had noticed that appeals in revenue matters involving indirect taxation are being filed with a gross delay.  In this regard, the court  directed the Centre to apprise it of the steps which would be taken in this regard. The Union government, in the Department of Revenue must find an answer to this state of affairs by ensuring that matters which are required to be litigated are litigated with all necessary dispatch and matters not worthy of being pursued are set to rest, it was observed.

On 15th February, the Solicitor General submitted a note before the Court. During the hearing on the said day, the bench also discussed the need to incorporate technological innovations in the process of monitoring litigation involving the revenue. It directed the centre to submit a consolidated proposal also incorporating technological modalities be placed before the Court on the next date of listing. Thereafter, the proceedings were adjourned on 15 March 2021, 18 March 2021, 23 March 2021, 13 April 2021 and 20 April 2021 as the Centre repeatedly sought time to submit the proposal.

When the matter came up last week, the bench observed that recalcitrance on the part of the Ministry of Finance in the Department of Revenue unacceptable. The delay in responding to the Court is beyond comprehension, the court said.

"Before we take the next step of issuing a contempt notice, we give a last and final opportunity to the Union Government to sort out the issue and come before this Court with a concrete plan of action, beyond circulars. We clarify that if, on the next date, no such proposal is forthcoming, the Court will be constrained to take recourse to the coercive arm of the law against the officers involved", the Court added.

The appeals will now be considered on 20 August 2021.

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