1973 (8) TMI 145 - HC - VAT and Sales Tax

Summary

Issues:
- Condonation of delay in filing an appeal under the U.P. Sales Tax Act.
- Whether delay in depositing admitted tax is automatically condoned if appeal filing delay is condoned.

Detailed Analysis:

The judgment pertains to a reference under section 11(3) of the U.P. Sales Tax Act, where the Commissioner of Sales Tax referred a question of law to the High Court regarding the condonation of delay in filing an appeal. The assessee was aggrieved by an assessment order for the year 1966-67, where the appeal was filed beyond the prescribed time limit, leading to an application for condonation of delay. The appellate authority initially held the appeal as time-barred based on a previous court decision. However, the Judge (Revisions), Sales Tax, opined that the delay could be condoned if the explanation provided by the assessee was satisfactory, leading to a remand of the case.

The main question posed for the opinion of the court was whether the delay in depositing the admitted tax within the prescribed time for filing the appeal stands automatically condoned if the admitted tax was deposited before the filing of the appeal and the delay in filing the appeal itself was condoned under section 5 of the Limitation Act. The court highlighted the requirement under section 9 of the U.P. Sales Tax Act that no appeal against an assessment shall be entertained unless accompanied by proof of payment of the admitted tax. The department contended that even if the delay in filing the appeal could be condoned, the delay in depositing the admitted tax could not be condoned as per the proviso.

The court relied on a Supreme Court decision in Lalta Prasad Khinni Lal v. The Assistant Commissioner, Sales Tax, which held that an appeal only becomes valid when proof of payment of admitted tax is furnished. The court clarified that the deposit of admitted tax is a condition precedent for filing an appeal, and if not satisfied, the appeal is not proper. The court concluded that once the delay in filing the appeal is condoned, the delay in depositing the admitted tax would automatically stand condoned. Therefore, the court answered the question in the affirmative in favor of the assessee, allowing the appeal and awarding costs to the assessee.

In summary, the judgment clarifies that the delay in depositing admitted tax is automatically condoned if the delay in filing the appeal is condoned, as the deposit of admitted tax is a necessary condition for a valid appeal under the U.P. Sales Tax Act. The court's decision was based on the principle that once the delay in filing the appeal is condoned, the delay in depositing the admitted tax is also deemed condoned.