Reasonable time for capacity finalisation: assessee non-cooperation can justify ex parte determination despite delay.

Rule 3(4) of the Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997 required expeditious finalisation of annual capacity, but it prescribed no statutory limitation. Finalisation therefore had to occur within a reasonable time on the facts of each case. Where the assessee did not cooperate or appear despite opportunities, the authority could proceed ex parte on the available material, and delay attributable to the assessee did not invalidate the finalisation merely because it was completed years after the provisional order. The challenge based on delay accordingly failed, and the capacity determination and duty liability were upheld.

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Issues: Whether the finalisation of provisional annual capacity and corresponding duty liability was invalid for having been completed beyond a reasonable time.

Analysis: Rule 3(4) of the Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997 required expeditious determination of annual capacity, but no statutory limitation was prescribed. The determination had to be completed within a reasonable period, assessed on the facts of each case. Where the assessee failed to cooperate or appear despite opportunities, the authority could proceed ex parte on the basis of the available material, and delay attributable to the assessee could not be used to invalidate the finalisation merely because it occurred several years after the provisional order.

Conclusion: The challenge based on delay failed and the finalisation of capacity and duty liability was upheld.

Ratio Decidendi: In the absence of a prescribed limitation, finalisation of provisional assessment must be within a reasonable time, but undue delay cannot be attributed to the authority where the assessee fails to cooperate or participate in the proceedings.

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