Reasonable time in assessment proceedings bars revival of stale tax assessments unless retrospective intent is clearly expressed.

Assessment proceedings kept pending for many years after returns and supporting records were filed were treated as stale and unreasonable where the revenue offered no satisfactory explanation for the delay. The governing principle stated is that statutory assessment power must be exercised within a reasonable time and in a manner that remains fair, rational and non-arbitrary. The later insertion of section 17(6) and its proviso in the Kerala General Sales Tax Act did not, on the stated facts, retrospectively validate or revive proceedings that had already become stale, because such revival requires clear express language or necessary implication. The impugned notices and assessments were therefore liable to be quashed.

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Issues: Whether assessment proceedings pending for an unreasonably long period could be sustained under the second proviso to section 17(6) of the Kerala General Sales Tax Act, 1963, and whether such stale proceedings could be revived by the amending provision.

Analysis: The assessments had remained pending for many years after the returns and supporting records were filed, with no satisfactory explanation from the revenue for the long inaction. The governing principle is that statutory power, including assessment power, must be exercised within a reasonable time and the proceeding must remain fair, rational, and non-arbitrary. The amendment introduced section 17(6) and its proviso, but there was nothing to show that it was intended to retrospectively validate proceedings which had already become unreasonable and stale. A provision introducing a limitation framework does not, by itself, revive proceedings that had become barred or unreasonably delayed unless such intention is expressed clearly or arises by necessary implication.

Conclusion: The assessment proceedings were not saved by the second proviso to section 17(6), and the impugned notices and assessments were liable to be quashed in favour of the assessee.

Ratio Decidendi: An assessment proceeding that has become stale because it was not completed within a reasonable time cannot be revived by a subsequent amendment unless the statute clearly makes that revival retrospective.

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