2019 (2) TMI 926 - HC - VAT and Sales Tax

Condonation of delay of 15 years i.e. 5,484 days in filing appeal - inordinate delay was explained by the applicant-assessee stating that a letter had been written to the General Manager of the assessee seeking guidelines with reference to the aforesaid assessment order dated 7.8.2003 - Held that - It remains undisputed that the assessee had been served with the assessment order dated 7.8.2003 itself. Also, admittedly the appeal came to be filed for the first time on 15.9.2018 and not before that. The fact that the assessee may have made an application for refund of the money was of no consequence, inasmuch once the assessment order had been served on the assessee, there remained no occasion for claiming refund without the assessment order being first set aside, in appeal - The fact that the assessee had been writing letters internally is also of no consequence, inasmuch in the context of delay of 15 years procedural delays that sometimes occur in such matters and which are often accepted as due explanation of the delay do not are of few days or few months, not 15 years. The delay is wholly inordinate and excessive. Revision dismissed.

Summary

Issues:
- Delay in filing appeals against assessment orders for multiple assessment years.

Analysis:
The judgment pertains to a set of revisions filed by the assessee against a common order passed by the Commercial Tax Tribunal. The revisions relate to appeals filed by the assessee for different assessment years. The facts and circumstances in these revisions are similar and interconnected, hence they were heard together and decided by a common order.

The primary issue addressed in the judgment is the delay in filing appeals against assessment orders. The assessee, engaged in providing telecommunication services, was subjected to reassessment under the Uttar Pradesh Trade Tax Act for the assessment year 2000-01. The final assessment order was passed on 7.8.2003, but the appeal against it was filed after a delay of 15 years, on 15.9.2018. The delay was attributed to internal communications seeking guidelines and references to pending proceedings, which did not result in the filing of an appeal within a reasonable time.

The assessee claimed that the telecom service and rental receipts were not liable to be taxed under the Act based on a Supreme Court judgment. Despite being aware of this, the assessee did not challenge the reassessment order dated 7.8.2003 promptly. The Trade Tax Department continued seeking recovery of the demand, prompting the assessee to finally file the appeal in 2018.

The counsel for the assessee argued that the delay should be condoned as the claim had prima facie merit, and the assessee was diligently pursuing the refund remedy. On the other hand, the Standing Counsel contended that the delay was inordinate, and no satisfactory explanation was provided. The Tribunal, after considering the arguments and the record, concluded that the delay of over 15 years was excessive and inordinate, leading to the rejection of the appeal.

The judgment emphasizes that internal letters and procedural delays cannot justify condoning a delay of 15 years in filing an appeal against the assessment order. The Tribunal found no error in rejecting the appeal, stating that all the revisions lacked merit and were dismissed accordingly, with no order as to costs.