2012 (7) TMI 866 - HC - VAT and Sales Tax

Whether, on the facts and in the circumstances of the case, the honourable Tribunal was justified in dismissing the application for restoration of appeal? Whether, on the facts and in the circumstances of the case, the honourable Tribunal was justified in not condoning the delay caused by mistake of the counsel for the appellant? Held that - In the present case after appreciating the matter it cannot be said that there was sufficient cause for condonation of delay. The Tribunal had decided the matter on August 1, 2008, and a communication was sent to the counsel on September 10, 2008. The Tribunal has noticed that order dated August 1, 2008 was passed after affording fourteen opportunities to the appellant who was avoiding proceedings on one pretext or the other. There has been an inordinate delay of 549 days in filing the appeal. The learned counsel for the appellant was unable to demonstrate any steps taken against the counsel for his negligence. Such a plea without there being any material to substantiate cannot be accepted as such pleas invariably can be taken in all cases as a general defense. Appeal dismissed.

Summary

Issues:
1. Condonation of delay in filing an appeal before the Tribunal.
2. Justification for dismissal of application for restoration of appeal by the Tribunal.

Issue 1: Condonation of Delay in Filing Appeal:

The appellant, a registered dealer, sought exemption from sales tax, which was rejected by the Higher Level Screening Committee. An appeal was filed before the Commissioner and Secretary, which was later directed to the Tribunal. The appeal was dismissed by the Tribunal due to delay, and the appellant sought restoration after discovering the dismissal later. The appellant argued that no prejudice was caused to the respondent by the delay and cited various judgments to support the contention that the appellant should not be penalized for the counsel's mistake. The court examined the legal position under the Limitation Act, emphasizing that the law of limitation aims to ensure timely legal remedies without destroying parties' rights. The court highlighted the need for "sufficient cause" to condone delay, emphasizing a case-by-case analysis without a fixed standard.

Issue 2: Justification for Dismissal of Restoration Application:

The court analyzed the facts of the case and found no merit in the appeal. The Tribunal had provided multiple opportunities to the appellant, who failed to diligently pursue the matter. The appellant's claim of counsel's mistake leading to the delay was not substantiated with evidence. The court noted an inordinate delay of 549 days in filing the appeal, with no steps taken against the negligent counsel. The court emphasized that pleading counsel's mistake alone is not sufficient for condonation of delay. Despite citing case laws, the appellant failed to demonstrate a valid reason for the delay. The court concluded that no substantial question of law arose in the appeal, leading to its dismissal.

This judgment highlights the importance of timely legal actions and the need to establish "sufficient cause" for condonation of delay. It underscores the courts' discretion in evaluating individual circumstances and emphasizes the responsibility of parties to diligently pursue legal remedies.