2019 (3) TMI 602 - HC - VAT and Sales Tax

Condonation of delay of 503 days in filing appeal - time limitation - Section 5 of Limitation Act, 1963 - scope of sufficient cause - Held that - The Supreme Court in Oriental Aroma Chemical Industries Ltd. v. Gujarat Industrial Development Corporation and another, 2010 (2) TMI 1121 - SUPREME COURT OF INDIA laying down the broad principles for adjudicating the issue of condonation of delay, has held that Although, no hard and fast rule can be laid down in dealing with the applications for condonation of delay, this Court has justifiably advocated adoption of a liberal approach in condoning the delay of short duration and a stricter approach where the delay is inordinate. The law of limitation has been enacted which is based on public policy so as to prescribe time limit for availing legal remedy for redressal of the injury caused. The purpose behind enacting law of limitation is not to destroy the rights of the parties but to see that the uncertainty should not prevail for unlimited period - Under Section 5 of the 1963 Act, the courts are empowered to condone the delay where a party approaching the court belatedly shows sufficient cause for not availing the remedy within the prescribed period. The meaning to be assigned to the expression sufficient cause occurring in Section 5 of the 1963 Act should be such so as to do substantial justice between the parties. The existence of sufficient cause depends upon facts of each case and no hard and fast rule can be applied in deciding such cases. In the present case after appreciating the matter it cannot be said that there was sufficient cause for condonation of delay. However, the appeal was required to be filed within the stipulated period of limitation of 60 days. But the appellant filed the present appeal on 28.11.2018, after a delay of 503 days. The plea of the appellant as mentioned above would not satisfy the test of sufficient cause. The explanation of the appellant is bereft of justification for the delay caused in filing the appeal keeping in view the totality of facts and circumstances of the present case. Delay cannot be condoned - Application for condonation of delay is dismissed.

Issues involved:
- Condonation of delay in filing the appeal
- Whether there was sufficient cause for condonation of delay of 503 days in filing the appeal
- Legal position relating to condonation of delay under Section 5 of the Limitation Act, 1963
- Principles for adjudicating the issue of condonation of delay
- Application of the expression "sufficient cause" in Section 5 of the 1963 Act
- Judicial discretion in deciding cases of condonation of delay
- Factors to be considered for condonation of delay
- Examination of circumstances beyond control for delay
- Liberal approach for short duration delays and stricter approach for inordinate delays
- Analysis of the delay in filing the appeal
- Merits of the appeal regarding input tax credit claim
- Assessment of the Tribunal's findings on the ITC claim
- Lack of illegality or perversity in the Tribunal's findings

Detailed Analysis:

1. Condonation of Delay and Sufficient Cause:
The primary issue in this judgment was the condonation of a delay of 503 days in filing the appeal. The legal position under Section 5 of the Limitation Act, 1963 was examined, emphasizing the need to show "sufficient cause" for the delay. The court considered various precedents, highlighting the individualistic nature of the "sufficient cause" test and the discretionary power of the courts to decide based on the facts of each case.

2. Principles for Condonation of Delay:
The judgment referenced key principles from previous cases, emphasizing that the law of limitation aims to preserve legal remedies within a specified period. The courts are empowered to condone delay if sufficient cause is demonstrated, with a call for a liberal approach for short delays and a stricter stance for longer delays.

3. Application of "Sufficient Cause":
The court analyzed the application of the expression "sufficient cause" in Section 5 of the 1963 Act, stressing the need for a substantial justice approach based on individual case facts. The judgment highlighted the absence of an exhaustive list of factors constituting sufficient cause and the requirement for the appellant to prove circumstances beyond their control led to the delay.

4. Analysis of Delay in Filing Appeal:
The court examined the timeline of events leading to the delay in filing the appeal, considering the explanations provided by the appellant. Despite the appellant's arguments of unintentional delay due to circumstances beyond their control, the court found no grounds to condone the substantial delay of 503 days, concluding that the explanation lacked justification.

5. Merits of the Appeal and Tribunal's Findings:
Furthermore, the judgment addressed the merits of the appeal regarding an input tax credit claim. The Tribunal's findings were analyzed, highlighting that no illegality or perversity was identified in the Tribunal's decision to allow the dealer's appeal based on genuine transactions and assessments of the selling dealer.

6. Dismissal of Appeals:
Ultimately, the court dismissed the applications for condonation of delay and the appeals on the grounds of delay as well as on merits. The judgment concluded that the delay was not justified, and no legal basis existed to interfere with the Tribunal's findings, leading to the dismissal of the appeals.

By thoroughly analyzing the legal principles, precedents, and specific circumstances of the case, the judgment provided a comprehensive overview of the issues involved in the condonation of delay and the merits of the appeal related to input tax credit claims.

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