1991 (6) TMI 229 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Period of limitation for filing cross-objections under section 65(5) of the Gujarat Sales Tax Act, 1969.
2. Interpretation of procedural law to advance the cause of justice.
3. Examination of the scheme of the Gujarat Sales Tax Tribunal Regulations, 1973.

Detailed Analysis:

1. Period of Limitation for Filing Cross-Objections:
The central issue was whether the period of limitation for filing cross-objections under section 65(5) of the Gujarat Sales Tax Act, 1969, begins from the date of service of the notice issued in form 'C' under regulation 8(4) or from the date of notice of admission of appeal issued in form 'L' under regulation 16(1). The Tribunal had dismissed the cross-objections filed by the Revenue on the grounds of limitation, holding that the period began from the date of service of notice in form 'C'.

The High Court held that the period of limitation starts from the date of service of notice in form 'L' (admission of appeal) under regulation 16(1) and not from the date of notice in form 'C'. The court emphasized that the term "appeal has been preferred" in section 65(5) should be interpreted as "admitted." The rationale was that procedural steps before admission are internal matters between the Tribunal and the appellant, and the Commissioner is only required to act post-admission.

2. Interpretation of Procedural Law:
The court underscored that procedural laws should be interpreted to advance the cause of justice, aiming for substantial justice rather than upholding technicalities. The Tribunal was criticized for adopting a hypertechnical approach and not examining the scheme of the Regulations in the proper perspective. The court noted that procedural laws exist to facilitate justice and should be construed flexibly to achieve this end.

3. Examination of the Scheme of the Regulations:
The court detailed the stages of appeal under the Gujarat Sales Tax Tribunal Regulations, 1973:
- Presentation (Regulations 6 and 7): The initial filing and examination of the appeal.
- Scrutiny and Registration (Regulations 8 and 9): Addressing defects and registering the appeal.
- Admission (Regulation 13): Admission of the appeal by the President or an authorized member.
- Notice of Admission (Regulation 16(1)): Issuance of notice in form 'L' post-admission.
- Cross-Objections (Regulations 16, 17, and 18): Filing and handling of cross-objections.
- Final Hearing (Regulations 19 to 38): Procedures for the final hearing and judgment.

The court clarified that notices in forms 'B' and 'C' (Regulations 8(2) and 8(4)) are internal and do not trigger the limitation period for filing cross-objections. Only the notice in form 'L' (Regulation 16(1)) signifies the appeal's admission and starts the limitation period.

The court also addressed the argument regarding notice in form 'J' (Regulation 11), stating that it is purely administrative for calling records and does not indicate admission of the appeal.

Conclusion:
The High Court answered the question in the negative, favoring the Revenue and against the assessee, holding that the limitation period for filing cross-objections begins from the date of service of notice in form 'L' (admission of appeal) under regulation 16(1) and not from the date of notice in form 'C' under regulation 8(4). The court emphasized the importance of interpreting procedural laws to advance justice and criticized the Tribunal's hypertechnical approach.