2002 (1) TMI 1302 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Validity of the assessment order and penalty.
2. Delay in filing the appeal and condonation of delay.
3. Jurisdiction of the High Court under Article 226 of the Constitution of India.

Summary:

1. Validity of the Assessment Order and Penalty:
The petitioner, a cooperative society registered under the Pondicherry Cooperative Societies Act, was assessed for the year 1989-90 with an annual turnover of approximately Rs. 98 lakhs. The Deputy Commercial Tax Officer passed an assessment order on 27/09/1990, and a penalty u/s 12(5)(iii) of Rs. 3,58,537/- was levied for failing to disclose the turnover of sales of food and drinks in their hotel. The respondents contended that the penalty was the minimum of 50% of the difference in tax payable and was justified.

2. Delay in Filing the Appeal and Condonation of Delay:
The petitioner received the assessment order on 06/10/1990 and initially communicated with the Appellate Assistant Commissioner on 05/11/1990 to withhold the assessment orders, which was not considered as a formal appeal. The formal appeal was filed on 01/02/1991, resulting in a delay of 93 days. The appellate authority dismissed the appeal due to the delay, as per Section 31 of the TNGST Act, which allows condonation of delay only up to 30 days beyond the prescribed period of 30 days. The Taxation Special Tribunal upheld this decision, leading to the current writ petition.

3. Jurisdiction of the High Court under Article 226:
The petitioner argued that the High Court should exercise its discretionary jurisdiction u/s Article 226 of the Constitution of India to condone the delay and direct the appellate authority to hear the case on merits. However, the Court held that it cannot extend the period of limitation prescribed by the statute. The Court cited several precedents, including the Supreme Court's rulings, emphasizing that statutory time limits must be strictly adhered to and cannot be extended by the Court.

Conclusion:
The High Court dismissed the writ petition, stating that the appellate authority and the Taxation Special Tribunal's decisions were legal and proper. The Court clarified that it has no jurisdiction to direct the appellate authority to consider the appeal on merits after the expiry of the prescribed time limit. The dismissal of the writ petition does not prevent the Government from granting any relief under its powers.