2014 (7) TMI 362 - HC - VAT and Sales Tax

Condonation of delay - Delay of 1360 days - Delay due to government work mechanism - Held that - The Department appears to have sent a proposal to the Finance Department, which had approved it on May 3, 2010 and after the same was received back along with necessary papers and orders permitting the office of the Government Pleader to file tax appeal, it appears that the tax appeal which was to be filed within the period of limitation prescribed under the law, came to be filed after a huge delay of 1,360 days. What is stated for explaining such delay is that due to Government administrative mechanism, within the statutory time period, tax appeal could not be filed. In absence of any specific details and explanation, this explanation in general terms does not satisfy us. There can be no straightjacket formula adopted which can be applied uniformly in all matters, without considering the facts and circumstances of the case. In absence of any satisfactory explanation coming forth for condonation of delay, we are of the opinion that no liberal attitude requires to be adopted; particularly considering the inordinate delay in preferring this application. Only because the applicant is the State, it cannot be absolved of its responsibility to fulfil the mandate of law. Even if day today explanation is not desired, for a long period after the sanction of Finance Department also, nothing emerges on record to indicate due care or diligence to satisfy the requirement of explaining sufficiency of cause. - Condonation denied.

Issues Involved:
1. Condonation of delay in filing the tax appeal.
2. Justification of the delay and the concept of "sufficient cause."
3. The application of liberal approach versus strict adherence to the Limitation Act.
4. The impact of procedural delays in government functioning on legal proceedings.

Issue-wise Detailed Analysis:

1. Condonation of Delay in Filing the Tax Appeal:
The primary issue revolves around the application for condonation of a 1360-day delay in filing a tax appeal against the Gujarat Value Added Tax Tribunal's order dated January 21, 2009. The applicant-State received the certified copy of the impugned judgment on February 12, 2009, and initiated the proposal to challenge the judgment on January 2, 2010. The Finance Department sanctioned the proposal on May 3, 2010, and the Government Pleader's office received the papers on May 21, 2010. The applicant cited the extensive administrative procedures required to file the appeal as the cause of the delay.

2. Justification of the Delay and the Concept of "Sufficient Cause":
The applicant argued that the delay was due to the inherent procedural delays in government functioning and that a meritorious case would be prejudiced if the delay was not condoned. The applicant referenced the Supreme Court's decision in G. Ramegowda (Major) v. Special Land Acquisition Officer, which acknowledges procedural delays in government decisions and suggests a certain amount of latitude for government appeals. The applicant also cited N. Balakrishnan v. M. Krishnamurthy, emphasizing that limitation rules should not jeopardize parties' rights and interests, particularly when significant tax revenue is at stake.

3. The Application of Liberal Approach versus Strict Adherence to the Limitation Act:
Despite the applicant's reliance on precedents advocating a liberal approach, the court emphasized that such an approach should not undermine the substantial law of limitation. The court referred to Lanka Venkateshwarlu (D) by L. Rs. v. State of A.P., where the Supreme Court set aside the High Court's order condoning delay due to insufficient explanation, stressing that "liberal approach" should not jettison the substantial law of limitation. The court also referenced Balwant Singh (Dead) v. Jagdish Singh, which reiterated that "sufficient cause" must be legally and adequately justified, and the delay should be avoidable with due care and attention.

4. Impact of Procedural Delays in Government Functioning on Legal Proceedings:
The court scrutinized the applicant's explanation, noting that it was general and lacked specific details. The procedural delays cited by the applicant did not convincingly justify the extensive delay of 1360 days. The court reiterated that while some latitude might be permissible for government functioning, it does not absolve the State from fulfilling legal mandates. The court highlighted that even after receiving the Finance Department's sanction, there was no evidence of due diligence or care to expedite the filing process.

Conclusion:
The court concluded that the explanation provided by the applicant was insufficient to justify the delay. The absence of specific details and the general nature of the explanation did not meet the legal standard of "sufficient cause." Consequently, the application for condonation of delay was rejected, and the related Tax Appeal (Stamp) No. 80 of 2013 was also dismissed. The court emphasized that the State, like any other litigant, must adhere to the statutory time limits and cannot rely solely on its governmental status to seek leniency.

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