1975 (2) TMI 86 - SC - VAT and Sales Tax

Whether section 14(2) of the Limitation Act, in terms, or, in principle, can be invoked for excluding the time spent in prosecuting an application under rule 68(6) of the U.P. Sales Tax Rules for setting aside the order of dismissal of appeal in default under the U.P. Sales Tax Act, 1948 from computation of the period of limitation for filing a revision under that Act? Held that - Appeal allowed. The object, the scheme and language of section 10 of the Sales Tax Act do not permit the invocation of section 14(2) of the Limitation Act, either, in terms, or, in principle, for excluding the time spent in prosecuting proceedings for setting aside the dismissal of appeals in default, from computation of the period of limitation prescribed for filing a revision under the Sales Tax Act. Accordingly, we answer the question referred in the negative.

Issues Involved:
1. Applicability of Section 14(2) of the Limitation Act to proceedings under the U.P. Sales Tax Act.
2. Whether the authorities under the U.P. Sales Tax Act are considered "courts" under Section 14(2) of the Limitation Act.
3. Whether the principle of Section 14(2) can be applied on grounds of justice, equity, and good conscience.
4. Interpretation of Section 10(3-B) of the U.P. Sales Tax Act concerning the extension of the limitation period.

Detailed Analysis:

1. Applicability of Section 14(2) of the Limitation Act to Proceedings under the U.P. Sales Tax Act:
The primary legal question was whether Section 14(2) of the Limitation Act could be invoked to exclude the time spent in prosecuting an application under Rule 68(6) of the U.P. Sales Tax Rules from the computation of the limitation period for filing a revision under the U.P. Sales Tax Act. The court concluded that Section 14(2) of the Limitation Act does not apply to proceedings under the U.P. Sales Tax Act, either in terms or in principle. The court emphasized that the legislature's intent, as expressed in the scheme and language of Section 10 of the Sales Tax Act, does not permit the invocation of Section 14(2) for excluding the time spent in prosecuting abortive applications.

2. Whether the Authorities under the U.P. Sales Tax Act are Considered "Courts" under Section 14(2) of the Limitation Act:
The court reiterated that authorities exercising jurisdiction under the Sales Tax Act, including the appellate authority and the Judge (Revisions), are not "courts" within the meaning of Section 14(2) of the Limitation Act. Citing previous judgments, the court noted that these authorities are administrative tribunals and not courts of civil judicature. Consequently, Section 14(2) does not apply to proceedings before such tribunals.

3. Whether the Principle of Section 14(2) Can Be Applied on Grounds of Justice, Equity, and Good Conscience:
The court addressed whether the general principle underlying Section 14(2) could be applied on grounds of justice, equity, and good conscience to exclude the time spent in prosecuting abortive applications under Rule 68(6). The court held that the scheme and language of the Sales Tax Act, particularly Section 10(3-B), exclude the application of Section 14(2) of the Limitation Act, even in principle or by analogy. The court emphasized that the legislative intent was to ensure the speedy and final determination of fiscal matters within a reasonably certain time schedule, and the unrestricted application of Section 14(2) would undermine this objective.

4. Interpretation of Section 10(3-B) of the U.P. Sales Tax Act Concerning the Extension of the Limitation Period:
Section 10(3-B) of the Sales Tax Act prescribes a specific period of limitation for filing a revision application, with a maximum extension of six months on showing sufficient cause. The court noted that this provision does not allow for the exclusion of time spent in prosecuting prior proceedings under the analogy of Section 14(2) of the Limitation Act. The court highlighted three key features of Section 10(3-B):
- No limitation for the suo motu exercise of jurisdiction by the revising authority.
- An unusually long period of one year prescribed as the limitation for filing a revision application.
- No discretion for the revising authority to extend this period beyond six months, even on sufficient cause shown.

The court concluded that the legislature deliberately excluded the unrestricted application of the principles underlying Sections 5 and 14 of the Limitation Act, except as embodied in the truncated form in Section 10(3-B) of the Sales Tax Act. The court emphasized that it is the duty of the court to give full effect to the legislature's intent without adding or implying anything inconsistent with the expressed intent.

Conclusion:
The court set aside the judgment of the High Court, holding that Section 14(2) of the Limitation Act does not apply to proceedings under the U.P. Sales Tax Act. The appeals were allowed, and the question referred was answered in the negative, with no order as to costs since the appeals were heard ex parte.

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