2011 (1) TMI 1192 - HC - VAT and Sales Tax

Condonation of delay - short payment of the tax - interest on such delayed payment of tax Held that - application seeking condonation of delay should be rejected on the principle that the judgment of the competent Court had already attained a finality, no explanation for the delay of one year, no sufficient cause is shown by the petitioner to condone the delay, revision petitions are dismissed

Summary

Issues:
1. Challenge to the correctness of the direction given by the Tribunal regarding the levy of interest.
2. Condonation of delay in filing revisions due to the overruling of a previous decision by a Full Bench.
3. Application of legal principles regarding delay condonation based on previous judgments.
4. Dismissal of delay condonation applications and revision petitions.

Issue 1: Challenge to Tribunal's Direction on Levy of Interest
The Sales Tax Revisions arose from a common order of the Kerala Sales Tax Appellate Tribunal, where the respondent-assessee was found to have a short payment of tax for various assessment years. The Tribunal directed the assessing authority to follow specific precedents in levying interest on delayed tax payments. The revisions challenged the correctness of this direction, citing a Full Bench decision that overruled a previous decision. The State of Kerala sought condonation of delay in filing the revisions due to the substantial delay of over 300 days in each case.

Issue 2: Condonation of Delay in Filing Revisions
The respondent contested the delay condonation petitions, arguing that subsequent judicial declarations do not warrant condoning delays in filing appeals or revisions. The respondent relied on legal precedents such as Golak Nath v. State of Punjab to support this argument. However, the Court found this argument misconceived, stating that a subsequent judgment should not affect the condonation of delay if properly explained. The Court differentiated this case from precedents like CIT v. Ramachandra Hatcheries, emphasizing the need for proper explanation for delay condonation.

Issue 3: Application of Legal Principles on Delay Condonation
The Court discussed various legal precedents cited by the respondent, such as Suresh Babu v. Smt.S.Susheela Thimmegowda, to establish the principles governing delay condonation. The Court rejected the argument that a decision rendered by a competent court becomes unassailable if not challenged within the prescribed period. Instead, the Court emphasized that delay condonation applications should be considered based on established principles governing the condonation of delay in appeals or revisions.

Issue 4: Dismissal of Delay Condonation Applications and Revision Petitions
After evaluating the delay condonation applications, the Court found that no sufficient cause was shown to condone the delay of one year in filing the revisions. Consequently, the Court dismissed both the delay condonation applications and the revision petitions, upholding the Tribunal's direction on the levy of interest and rejecting the challenges raised by the State of Kerala.

This comprehensive summary outlines the legal judgment's key issues, analyses, and outcomes, covering the challenge to the Tribunal's direction, the condonation of delay in filing revisions, the application of legal principles on delay condonation, and the ultimate dismissal of the delay condonation applications and revision petitions.