2011 (12) TMI 484 - HC - VAT and Sales Tax

Condonation of delay - Held that - We are afraid, we cannot countenance any of the submissions made by him. We may reiterate that, even the explanation offered is contrary to the orders dated December 2, 1997 of the CCT, and therefore, delay cannot be said to be reasonable. In a case of this nature, if the delay is condoned, it would certainly occasion injustice to the other party.

Summary

Issues:
Delay in filing tax revision case under Andhra Pradesh General Sales Tax Act, 1957.

Analysis:
The judgment pertains to a case involving the condonation of delay in filing a tax revision case under the Andhra Pradesh General Sales Tax Act, 1957. The appellant filed a T. Rev. C.M.P purportedly under section 5 of the Limitation Act, 1963, seeking condonation of a 383-day delay in filing the tax revision case. However, it should have been filed under the proviso to sub-section (1) of section 22 of the Act. The court noted that the application lacked sufficient cause for the delay and allowed the Special Counsel for Commercial Taxes to file a better affidavit, which was subsequently submitted.

The delay was calculated based on rule 39 of the Andhra Pradesh General Sales Tax Rules, 1957, ignoring the limitation prescribed under section 22 of the Act, which mandates filing within 90 days from the date of service of the order of the Sales Tax Appellate Tribunal (STAT). The respondent argued that the actual delay was 408 days, not 383 days as claimed by the appellant, and the reasons provided for the delay were deemed inadequate, improper, and vague by the court.

The court examined the proceedings issued by the Commissioner of Commercial Taxes (CCT) to streamline the procedure for filing revisions under section 22(1) of the Act. The court highlighted that the TRC Committee's procedures, as outlined in the proceedings, were not followed, undermining the Department's submission regarding the delay.

Regarding the legal principles governing the condonation of delay, the court cited a Supreme Court decision emphasizing that the term "sufficient cause" must be construed liberally to advance substantial justice but should not condone negligence or want of bona fide. The court emphasized that the explanation for delay must be reasonable and in line with proper conduct, failing which it may lead to injustice to the other party.

Ultimately, the court dismissed the T. Rev. C.M.P and consequently the tax revision case, as it found the explanation for the delay unsatisfactory and contrary to the orders issued by the CCT. Condoning the delay in this case was deemed likely to result in injustice to the other party, leading to the dismissal of the case.