Reasonable time in fiscal adjudication bars stale show-cause notices when unexplained delay prejudices defence and fairness.

Even where no statutory limitation period is prescribed, fiscal authorities must adjudicate show-cause notices within a reasonable time, and inordinate unexplained delay can render belated proceedings invalid. Here, notices remained pending for nearly two decades because of revenue inaction, and the adjudicating authority also failed to consider earlier contrary departmental orders or the plea that the proceedings had become stale. The delay was found to prejudice the assessee's defence and to offend procedural fairness and natural justice, so the delayed adjudication and revived notices were held unsustainable and liable to be quashed.

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Issues: Whether the impugned adjudication order and the underlying show-cause notices could be sustained when the notices were adjudicated after an inordinate delay and the order failed to deal with prior contrary orders and the plea of stale proceedings.

Analysis: The challenge was founded on prolonged inaction in adjudicating the show-cause notices, which had remained pending for nearly two decades. The record showed that the delay was attributable to the revenue and not to the assessee. The adjudicating authority failed to consider the earlier orders passed by superior departmental authorities taking a contrary view, and also omitted to deal with the contention that such belated adjudication rendered the notices stale. In fiscal matters, where no rigid limitation period is prescribed, adjudicatory power must still be exercised within a reasonable time. Excessive and unexplained delay defeats the purpose of issuing a show-cause notice, prejudices the assessee's ability to defend, and offends procedural fairness and natural justice.

Conclusion: The impugned adjudication could not be sustained. The delayed resurrection of the notices was held impermissible, and the order was quashed.

Final Conclusion: Belated adjudication of long-pending show-cause notices, when wholly attributable to the revenue and unsupported by a lawful justification, is invalid and liable to be set aside.

Ratio Decidendi: Even where no statutory limitation period is prescribed, fiscal authorities must adjudicate show-cause notices within a reasonable time, and inordinate unexplained delay causing prejudice to the noticee violates procedural fairness and natural justice.

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