2019 (7) TMI 1 - HC - VAT and Sales Tax

Condonation of delay of 5 years in filing appeal - time limitation - permissible limitation cap - First Proviso to Section 51(1) of TNVAT Act - HELD THAT - The period of limitation prescribed for preferring an appeal is 30 days and the Appellate Authority has power to admit an appeal, presented after the expiry of the period of 30 days, if sufficient cause is shown subject to the rider that it is within a further period of 30 days - the time period prescribed for the appeal is 30 days and the Appellate Authority is vested with power to condone delay, but with rider that the delay should not be more than 30 days. In simpler terms, the maximum time limit available for an assessee to prefer an appeal under Section 51 of TNVAT Act is 30 30 60days as there is a cap qua delay condonation period. In Section 35-H, there is no provision for condonation of delay at all. Even in such cases i.e., cases where there is neither provision for delay condonation nor cap, the Hon'ble Supreme Court has held that the period of limitation prescribed is absolute and cannot extended. In the case of SINGH ENTERPRISES VERSUS COMMISSIONER OF C. EX., JAMSHEDPUR 2007 (12) TMI 11 - SUPREME COURT , Hon'ble Supreme Court dealt with a case, where there is a provision of condonation of delay, but subject to a cap of 30 days. Dealing with this cap, Hon'ble Supreme Court held that in cases, where such condonation of delay is provided, there is a complete exclusion of Section 5 of the Limitation Act. Therefore factual matrix in Singh Enterprises and case on hand mirror each other. Petition dismissed - decided against petitioner.

Summary

Issues:
1. Delay in filing statutory appeal under TNVAT Act.
2. Appeal rejection by Appellate Authority.
3. Applicability of provisions for condonation of delay.

Analysis:
1. The case involved a dealer registered under the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) who failed to file monthly returns, leading to a best judgment assessment by the Assessing officer. The dealer later filed an appeal after more than 5 years, which was rejected by the Appellate Authority citing reasons including the failure to submit the original assessment order and the delay in filing the appeal beyond the permissible period.

2. The writ petitioner challenged the rejection of the appeal through a writ petition. The petitioner cited a previous order by a Single Judge directing the Appellate Authority to entertain an appeal beyond the permissible limitation cap. However, the Revenue counsel pointed out that a Division Bench had reversed the Single Judge's order, emphasizing that the Appellate Authority lacks the power to condone delays beyond the extendable period.

3. The court examined the relevant provision under Section 51(1) of the TNVAT Act, which allows the Appellate Authority to admit an appeal after the initial 30-day period if sufficient cause is shown, subject to a further 30-day limit. Referring to Supreme Court judgments, the court highlighted that statutory provisions with a cap on delay condonation do not allow for the extension of time under Section 5 of the Limitation Act. The court concluded that in cases like the present one, time limitations are absolute and cannot be extended beyond the statutory framework, leading to the dismissal of the writ petition.

This detailed analysis of the judgment provides a comprehensive understanding of the issues related to the delay in filing the statutory appeal, the rejection by the Appellate Authority, and the legal provisions governing the condonation of delays under the TNVAT Act.