2016 (1) TMI 586 - HC - VAT and Sales Tax

Condonation of inordinate delay of 1298 days in filing the appeal - revenue appeal - Power of the Checking Officer to decide the nature of transactions at hand - Haryana Value Added Tax Act 2003 - Held that - The narration of cause for claiming condonation of delay in filing the present appeal does not satisfy the test of sufficient cause so as to entitle the State for condonation of inordinate delay of 1298 days in filing the appeal. Narration of above facts shows that the State was not serious in pursuing the litigation. The State should be more vigilant and serious in pursuing the litigation. It is very surprising and astonishing that it has taken such a long time for the decision making process for filing the appeal. The State must ensure in future that the matter is expedited and the responsibility is fixed on the officer/official dealing with the filing of the appeals in case any delay occurs on their part. Since no sufficient cause has been shown in the present case no ground for condonation of delay is made out. - Decided against the revenue.

Issues:
1. Condonation of delay in filing the appeal under Section 36 of the Haryana Value Added Tax Act, 2003.
2. Justification of the Tribunal's decision regarding the nature of transactions and penalty imposition.
3. Setting aside of orders by the Tribunal and the need for remanding the case to the Assessing Authority.

Analysis:
1. The appeal was filed by the State of Haryana under Section 36 of the Haryana Value Added Tax Act, 2003, challenging the order passed by the Haryana Tax Tribunal. The delay in filing the appeal was 1298 days, and an application for condonation of delay was submitted under Section 5 of the Limitation Act, 1963. The court examined the reasons provided for the delay, emphasizing the importance of a satisfactory explanation for such a significant delay. Referring to legal principles, the court highlighted that the law of limitation aims to prevent dilatory tactics and ensure timely legal remedies. The court noted that a liberal approach is advocated for short delays, but a stricter approach is warranted for inordinate delays. In this case, the court found that the State failed to demonstrate sufficient cause for the prolonged delay, indicating a lack of seriousness in pursuing the litigation. Consequently, the application for condonation of delay was dismissed, leading to the dismissal of the appeal as time-barred.

2. The Tribunal's decision regarding the nature of transactions and penalty imposition was also scrutinized. The case involved the interception of goods during a roadside checking, leading to tax charges and penalties imposed by the Assessing Authority. The respondent appealed these decisions, ultimately reaching the Tribunal, which set aside the previous orders, citing insufficient inquiries into the sale price. The Tribunal directed the case to be sent to the Assessing Authority for further examination. The appellant contested the Tribunal's decision, questioning the justification for penalty imposition and the handling of the case. The court assessed the validity of the Tribunal's actions, focusing on the authority of the Checking Officer to determine transaction nature and impose penalties under Section 31(8) of the Act. The court deliberated on whether the Tribunal erred in setting aside the lower authorities' orders and not remanding the case to the Assessing Authority. The judgment highlighted the need for thorough examination and adherence to legal provisions in such matters.

3. The court emphasized the importance of diligently pursuing legal matters and ensuring timely actions to uphold the integrity of the judicial process. The judgment underscored the need for vigilance and expediency in handling litigation matters, particularly concerning tax disputes and appeals. By dismissing the appeal due to the time-barred nature resulting from the delay in filing and lack of sufficient cause, the court reinforced the significance of procedural compliance and timely legal actions to maintain the efficacy of the legal system.

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