Reasonable-time requirement for adjudication: unexplained nine-year delay after notice rendered the proceedings unsustainable.

An adjudication order passed nearly nine years after the show cause notice was unsustainable because, even where no express statutory time limit exists, adjudicatory power must be exercised fairly, reasonably, and within a reasonable time. An inordinate and unexplained delay can prejudice the noticee's defence, particularly when relevant records are no longer available. The substantial lapse of time in this matter was held unacceptable in law, and the issue was decided in favour of the assessee.

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Issues: Whether an adjudication order passed nearly nine years after the issue of the show cause notice was legally sustainable.

Analysis: In the absence of any express statutory time-limit for commencing or completing adjudication after issuance of a show cause notice, the power of the authority cannot be left to operate indefinitely. A statutory discretion, whether administrative or quasi-judicial, must be exercised fairly and reasonably and within a reasonable time. An inordinate and unexplained delay in adjudication can prejudice the noticee and impair the opportunity to defend the case effectively, especially where relevant records are unavailable. The delay in the present matter was substantial and was held to be unacceptable in law.

Conclusion: The adjudication after an unexplained lapse of nearly nine years was not permissible and the issue was decided in favour of the assessee.

Ratio Decidendi: Where no express limitation period is prescribed, statutory adjudicatory power must be exercised within a reasonable time, and inordinate delay that prejudices the defence renders the adjudication unsustainable.

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