2019 (9) TMI 217 - HC - VAT and Sales Tax

Maintainability of appeal - appeal dismissed on the ground that statutory deposit of 12.5% of the disputed amount of tax was not paid within time - delay on the part of the petitioner-company to make such deposit - HELD THAT - It was not proper on the part of the Appellate Deputy Commissioner (CT), Punjagutta Division, Hyderabad, to reject the appeals filed by the petitioner-company on the ground of delayed deposit of 12.5% of the disputed amount of tax - The appellate orders dated 17.02.2017 and 30.03.2017 passed by the Appellate Deputy Commissioner (CT), Punjagutta Division, rejecting the petitioner-company s appeals on this ground are accordingly set aside and the said appeals are restored to the file of the said appellate authority. Appeal disposed off.

Summary

Issues:
1. Dismissal of appeals by the Appellate Deputy Commissioner due to non-payment of statutory deposit within time.
2. Interpretation of legal position regarding delayed deposit of disputed tax amount for filing appeals.

Analysis:
1. The petitioner, M/s. Artex Infra Projects, challenged assessment orders related to tax periods 2013-14 and 2014-15 under the Telangana Tax on Entry of Goods into Local Areas Act, 2001. Their appeals were dismissed by the Appellate Deputy Commissioner for not paying the 12.5% disputed tax amount deposit on time. The Commissioner held that the delay in deposit could not be condoned, leading to the dismissal of the appeals.

2. The High Court found the Commissioner's understanding incorrect based on a Supreme Court judgment in M/s. S.E. Graphites Private Limited v. State of Telangana. The Supreme Court decision impliedly overruled a previous High Court judgment and established that if an appeal is filed within the limitation period but the deposit is made late, the delay should be condoned, and the appeal should be decided on merits. Therefore, the Appellate Deputy Commissioner erred in rejecting the appeals solely based on delayed deposit.

3. In light of the established legal position, the High Court set aside the orders of the Appellate Deputy Commissioner and restored the appeals to be heard on merits. The Commissioner was directed to dispose of the appeals within thirty days from the date of the court's order, following the Supreme Court's directive in M/s. S.E. Graphites Private Limited case. The writ petitions were allowed, and pending petitions were closed without any costs being imposed.