"REASONABLE TIME"
At times, we may feel that the department has not issued a notice or order within a reasonable timeframe or that we were not given enough time to respond to such notices.
What does the term "reasonable time" exactly mean?
Computation of Reasonable Time depends upon facts of each case and purpose of statute. Action must be taken within reasonable time, where no period of limitation specified. Time must be reckoned reasonably, not only in order to preserve rights and advantages which party possess
but equally, to protect each party from losses, he ought not to suffer. Supreme Court in Chhedi Lal Yadav vs Hari Kishore Yadav [(2018) 5 SCC 427 : AIR 2017 SC Supp 435]
Where no period of limitation is prescribed under statute, assessment should be completed expeditiously within a reasonable time. Reasonableness of time would depend upon circumstances in each case. Supreme Court in Bharat Steel Tubes Ltd. vs State of Haryana [(1988) 3 SCC 478 :
AIR 1988 SC 16 : (1988) 70 STC 122]
Where no period of limitation is prescribed, power cannot be exercised by the authority indefinitely. Supreme Court in State of Jharkhand vs Shivam Coke Industries [(2011) 8 SCC 656 : (2011) 43 VST 279 : 2011 AIR SCW 4661]
Revival of proceedings after 14 years without disclosing any reason for delay was unlawful and arbitrary; show cause notice and adjudication order were to be set aside. Gujarat High Court in Principal Commissioner of Customs vs Suraj Karan Baradia [(2024) 387 ELT 603]
Where during peak period of COVID pandemic, assessee sought two weeks time to reply to show cause notice pointing out defects in refund application, but only 3 days time was provided.
Providing only three days to file reply could not be termed as reasonable time or an adequate opportunity of a hearing.
The Order rejecting refund application was in violation of principles of natural justice.
Bombay High Court in Wallem Shipmanagement India Pvt. Ltd. vs
Union of India [(2023) 75 GSTL 570]
I hope you will find this research work useful.
Warm Regards,
Abhishek Raja Ram
9810638155
Abhishek Raja "Ram"
@abhishekrajaram
MEC, STBA Delhi || Speaker and Author on GST. Life dedicated towards Tax and Economic Reforms & Simplification