Recovery cannot be effected 3 years from the date of SCN

Next question needs to be considered is whether the demand for the period March 2003 to February 2007 can be enforced when the demand notice was issued on 14.9.2007. In the aforesaid case where the Honorable High Court observed that the in absence of time limit prescribed for recovery, a reasonable period, be applied for recovery of the amount. More or less in similar circumstances, where the Honorable Gujarat High Court while directing recovery of the amount in Pratibha Syntex Ltd. Vs. UOI 2013 (287) ELT 290 (Guj.) observed that judging the period of limitation from the armchair of a reasonable person under no circumstance more than three years period could be considered as a reasonable period for effecting recovery of the amount. Therefore, in my view, recovery could be effected for three years from the date of issue of show cause notice. Consequently, the matter is remanded to the adjudicating authority for calculation of the demand afresh in the light of the above observation. In the facts and circumstances of the present case, I do not find any justification for imposition of penalty. Accordingly, the penalty imposed on the appellant is set aside.