2009 (10) TMI 843 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of rejection of application for composition under section 7D of U.P. Trade Tax Act.
2. Condonation of delay in filing application under the compounding scheme.
3. Applicability of section 5 of the Limitation Act in extending the prescribed period.

Analysis:
1. The petitioner, a brick-kiln owner, challenged the Trade Tax Officer's order rejecting the application for composition under section 7D of the U.P. Trade Tax Act and imposing tax under section 7(3) read with section 18. The dispute pertained to the period from October 1, 1995, to September 30, 1996, and October 1, 1994, to September 30, 1995. The compounding scheme by the State Government aimed to benefit brick-kiln owners, with a prescribed application deadline and late fee provisions.

2. The petitioner's application was dismissed as time-barred for filing after September 30, 1995, missing the extended deadline of April 30, 1995, with late fee payment. The petitioner sought condonation of the delay in filing under the composition scheme by applying the principle of section 5 of the Limitation Act. The key contention revolved around extending the limitation period for filing the application under section 7D of the Act, as per the precedent set in Saket Bricks Traders case.

3. The court held that the Trade Tax Act did not incorporate the provisions of the Limitation Act, thus precluding the application of the principle of condonation of delay in filing. Citing the Saket Bricks Traders case, the court emphasized that the legislature did not include the Limitation Act's provisions in the Trade Tax Act. Consequently, the court dismissed both writ petitions, as the issue of extending the prescribed period was conclusively settled by the previous decision, leading to the rejection of the petitioner's plea for condonation of delay.