2007 (8) TMI 701 - HC - VAT and Sales Tax

Condonation of delay seeked - opportunity to re-present the appeal - Held that - It is the case of the petitioner that the appeal papers were returned for production of payment receipts and the same were re-presented on August 6, 2004. If that be the case, the proper course to be adopted by the second respondent is that he should have asked the petitioner/assessee to file an application for condonation of delay, if it exceeds more than 60 days, as per section 36(1) of the Act or in the alternative, he should have fixed the date for hearing the matter by giving specific notice before rejecting the appeal. The assessee shall re-present the papers along with the payment certificate to satisfy the requirements for entertaining the appeal, with the condone-delay petition, within a period of two weeks from the date of receipt of a copy of this order and the second respondent is directed to take up the condone-delay petition and pass orders on merits and in accordance with law, within a period of two weeks thereafter. With the above direction, the writ petition is allowed.

Issues involved:
- Delay in filing the second appeal under section 36 of the Tamil Nadu General Sales Tax Act, 1959.
- Compliance with the statutory pre-conditions for entertaining an appeal.
- Interpretation of section 36(1)(a) regarding proof of payment of admitted tax.
- Application of regulation 7 of the Tamil Nadu Sales Tax Appellate Tribunal Regulations, 1959.
- Validity of the order of rejection based on delay.
- Maintainability of the appeal and calculation of the appeal filing period.

Analysis:
1. Delay in filing the second appeal:
The petitioner, a building contractor and registered dealer, filed a second appeal under section 36 of the TNGST Act within the prescribed time limit. The Appellate Tribunal can admit an appeal presented after the initial 60-day period if satisfied with the appellant's sufficient cause for delay. The order emphasizes the importance of adhering to the statutory time limits for filing appeals.

2. Compliance with statutory pre-conditions:
The Registrar of the Tamil Nadu Sales Tax Appellate Tribunal required the petitioner to produce payment receipts of the disputed tax before entertaining the appeal. The petitioner re-presented the appeal papers with the necessary payment receipts, demonstrating compliance with the pre-conditions for appeal consideration.

3. Interpretation of section 36(1)(a):
The respondent argued that the petitioner failed to comply with the requirement of filing satisfactory proof of payment of admitted tax within the specified time frame. The court analyzed the meaning of "any appeal shall be entertained" under section 36(1)(a) and upheld the validity of the rejection based on belated payment of the admitted tax.

4. Application of regulation 7:
Regulation 7 of the Tamil Nadu Sales Tax Appellate Tribunal Regulations, 1959 outlines procedures for handling appeals that do not prima facie fall under section 36(1) of the Act. The regulation necessitates notifying the appellant to rectify defects within a reasonable period before rejecting the appeal, ensuring procedural fairness and adherence to legal requirements.

5. Validity of rejection based on delay:
The court identified flaws in the rejection order, emphasizing that the appeal's delay calculation should commence from the receipt of the appellate authority's order, not the original authority's decision. The order was set aside, directing the petitioner to re-present the appeal papers with the necessary documentation within a specified timeframe.

6. Maintainability of the appeal and appeal filing period:
The judgment clarified that the time for filing an appeal should be calculated from the receipt of the appellate authority's order. The court directed the petitioner to resubmit the appeal papers with the required documentation and a condone-delay petition within a stipulated period, ensuring compliance with legal procedures and facilitating a fair review of the appeal.

In conclusion, the judgment highlights the significance of procedural compliance, adherence to statutory time limits, and the need for fair and transparent appeal processes in tax matters.

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