TMI Blog1989 (7) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... f any period of limitation it is settled that every authority is to exercise the power within a reasonable period. What would be reasonable period, would depend upon the facts of each case. Whenever a question regarding the inordinate delay in issuance of notice of demand is raised, it would be open to the assessee to contend that it is bad on the ground of delay and it will be for the relevant officer to consider the question whether in the facts and circumstances of the case notice or demand for recovery was made within reasonable period. No hard and fast rules can be laid down in this regard as the determination of the question will depend upon the facts of each case. Appeal allowed. - 1403 to 1406 of 1974 - - - Dated:- 20-7-1989 - K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sole ground that Rule 12 under which the impugned notices were issued was ultra vires the Act, consequently, proceedings initiated in pursuance thereof, were without jurisdiction. On these findings the writ petitions were allowed and the notices as well as the proceedings were quashed. 3. The sole question which arises for consideration in these appeals relates to the validity of Rule 12 of the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956. The High Court has declared the Rule ultra vires on the ground that the Act was silent on the question of levy of duty on escaped turn-over and hence Rule 12 which provides for the recovery of escaped duty was outside the purview and scope of the Act. 4. The Act was enacted to prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 confers power on the Central Government to make rules to carry out the purposes of the Act. The relevant provision of Section 19 is as under : "19(1). The Central Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act. (2) In particulars, and without prejudice to the generality of the foregoing powers, such rules may - (i) provide for the assessment and collection of duties levied under this Act, the authorities by whom functions under this Act are to be discharged, the issue of notices requiring payment, the manner in which the duties shall be payable and the recovery of duty not paid." Section 19(1) read with Section 3(3) confer wide powers on the Central Government to make ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of payment of duty. Rule 12 confers residuary power for the recovery of sums due to the Government. Rule 12 reads as under : "12. Residuary powers for recovery of sums due to Government. - Where these rules do not made any specific provision for the collection of duty, or of any deficiency in duty if the duty has for any reason been short-levied, or of any other sum of any kind payable to the collecting government under the Act or these rules, such duty, deficiency in duty or sum shall, on written demand made by the proper officer, be paid to such person and at such time and place, as the proper officer may specify." 5. As already noted Rules contained in Chapter III of the Rules particularly Rules 6, 9, 10 and 11 provide for paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Article 14 of the Constitution, as it does not provide for any period of limitation for the recovery of duty. He urged that in the absence of any prescribed period for recovery of the duty as contemplated by Rule 12, the officer may act arbitrarily in recovering the amount after lapse of long period of time. We find no substance in the submission. While it is true that Rule 12 does not prescribe any period within which recovery of any duty as contemplated by the Rule is to be made, but that by itself does not render the Rule unreasonable or violative of Article 14 of the Constitution. In the absence of any period of limitation it is settled that every authority is to exercise the power within a reasonable period. What would be reasonable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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