2009 (12) TMI 881 - HC - VAT and Sales Tax

Whether the delay in filing of the appeal beyond the period of 60 days prescribed by section 68(2)(a) of the Punjab Value Added Tax Act, 2005, could be condoned by entertaining an application under section 5 of the Limitation Act, 1963? Held that - The delay in filing the appeal beyond the period specified under section 62(4) and 63(2) could be condoned in the interest of justice and for the reasons to be recorded in writing by the appellate authority. However, in section 68(2)(a) a period of 60 days for filing the appeal before this court has been provided but there is no provision parallel to section 64 providing for condonation of delay. The application(s) filed under section 5 of the Limitation Act seeking condonation of delay in filing the appeals are dismissed. Consequently, the appeals also fail and are dismissed being time-barred.

Summary

Issues:
Delay in filing appeals beyond prescribed period under Punjab Value Added Tax Act, 2005 and applicability of section 5 of the Limitation Act, 1963 for condonation of delay.

Analysis:

Issue 1: Delay in filing appeals under Punjab Value Added Tax Act, 2005

The court addressed the common question of law raised in multiple appeals regarding the delay in filing appeals beyond the prescribed period under the Punjab Value Added Tax Act, 2005. The central issue was whether the delay could be condoned by invoking section 5 of the Limitation Act, 1963. The court referred to the decision of the Supreme Court in Commissioner of Customs & Central Excise v. Hongo India (P) Ltd., where it was established that special laws providing for limitations govern matters exclusively. The court analyzed the provisions of sections 35, 35B, 35EE, 35G, and 35H of the Excise Act to determine the exclusion of the Limitation Act. It was concluded that the Excise Act is a complete code by itself, and the provisions of the Limitation Act do not apply. The court found similar provisions in the Punjab Value Added Tax Act, 2005, indicating that it is also a self-contained legislation like the Excise Act.

Issue 2: Applicability of section 5 of the Limitation Act, 1963

The court examined the provisions of the Punjab Value Added Tax Act, 2005, particularly section 68(2)(a), which prescribes a 60-day period for filing appeals. Unlike other sections allowing for condonation of delay, section 68(2)(a) does not provide for such provisions. Drawing parallels with the Excise Act, the court determined that the VAT Act is a comprehensive code, similar to the Excise Act. The court dismissed applications seeking condonation of delay under section 5 of the Limitation Act, emphasizing that the Act provides sufficient time for filing appeals without the need for additional condonation provisions. The court rejected the argument for amending the VAT Act based on amendments made to the Excise Act, as it would not impact the pending appeals.

In conclusion, the court dismissed the applications filed under section 5 of the Limitation Act seeking condonation of delay in filing the appeals, resulting in the dismissal of the appeals as time-barred. The judgment reaffirmed the self-contained nature of the Punjab Value Added Tax Act, 2005, akin to the Excise Act, and upheld the principle that special laws with limitation provisions prevail over general provisions like the Limitation Act.