1994 (1) TMI 256 - HC - VAT and Sales Tax

Summary

Issues:
1. Renewal of exemption certificate under the Haryana General Sales Tax Act, 1973.
2. Dismissal of appeal for condonation of delay in filing.
3. Procedure for establishing facts in an appeal.
4. Tribunal's failure to adjudicate on the plea raised.
5. Quashing of impugned orders and remittance of the case.

Renewal of Exemption Certificate:
The petitioner, a society registered with the Haryana Khadi and Village Industries Board, was doing business in handmade papers and had been granted an exemption certificate under the Haryana General Sales Tax Act, 1973, which was renewed annually. However, in 1991, their application for renewal was rejected, leading to a series of appeals culminating in a writ petition challenging the rejection orders.

Dismissal of Appeal for Condonation of Delay:
The appeal filed against the rejection of the renewal application was dismissed on the grounds of being time-barred. The counsel representing the petitioner had faced severe health issues, leading to delays in filing the appeal. Despite providing details of the illness and hospitalization supported by medical documents, the appeal was rejected without proper consideration of the grounds for delay.

Procedure for Establishing Facts in an Appeal:
The court highlighted the need for a proper procedure when an application for condonation of delay is disputed. It emphasized the importance of allowing the appellant to establish the facts alleged and the necessity of considering all relevant evidence before dismissing an appeal solely on the grounds of delay.

Tribunal's Failure to Adjudicate on the Plea Raised:
Both the Excise and Taxation Commissioner and the Tribunal failed to adequately address the appellant's plea regarding the delay caused by the counsel's illness. The Tribunal did not consider the affidavit filed by the counsel, which detailed the health issues and hospitalization, leading to an unjust dismissal of the appeal.

Quashing of Impugned Orders and Remittance of the Case:
The High Court, upon reviewing the facts and the medical evidence provided, found no reason to disregard the counsel's affidavit regarding the delay. Instead of remitting the case back for further adjudication, considering the prolonged pendency, the Court decided to allow the writ petition, quash the impugned orders, and remit the case to the Joint Excise and Taxation Officer for a decision on the appeal's merits.

In conclusion, the High Court allowed the writ petition, quashed the orders dismissing the appeal, and directed the Joint Excise and Taxation Officer to decide the appeal on its merits, considering the circumstances surrounding the delay in filing.