Limitation - When no limitation is prescribed in Statute
CENTRAL Excise officers have a feeling that for demands under Section 11D or 3A, there is no time limit and they can issue demands even after a hundred years. Some Courts have opined that where no limitation is prescribed, the provisions of the Limitation Act will apply. However, the Supreme Court does not agree. In a recent judgement, the Supreme Court held that if the legislature intended to provide for any period of limitation or intended to apply the provisions of Limitation Act, the legislature would have specifically said so in the Act itself. It is trite that if no period of limitation has been prescribed, statutory authority must exercise its jurisdiction within a reasonable period. What, however, shall be the reasonable period would depend upon the nature of the statute, rights and liabilities thereunder and other relevant factors. Three years period cannot be said to be a very long period and the power was exercised within a reasonable period of time.
We will bring you the judgement in the weekend.