2024 (8) TMI 255 - HC - VAT and Sales Tax

Condonation of delay of 933 days in re-presenting the appeal - delay was not properly explained by the Commercial Taxes Department - HELD THAT - As per Section 58(1)(a) of the TNVAT Act, 2006, any officer prescribed by the Government or any person objecting to an order passed by the Appellate Deputy Commissioner under Sub-Section (3) of Section 51 of the Act, or by the Appellate Joint Commissioner under Sub-Section (3) of Section 52 of the Act, or by the Joint Commissioner under Sub- Section (1) of Section 53 of the Act, may appeal against such order to the Appellate Tribunal, within a period of 120 days, in the case of an officer so prescribed by Government. It is to be noted that out of 933 days, the delay of almost 365 days can be attributed to the lockdown imposed by the Government due to the outbreak of Covid-19 Pandemic in 2020 with effect from 24.03.2020, leaving 568 days (933 365). A reading of Regulation 7(3) of the Tamil Nadu Value Added Tax Appellate Tribunal Regulations, 2011 indicates that there is no restriction in time. The second respondent Secretary is required merely to consider whether there is sufficient cause for the delay to cure the defects before re-presenting the appeal within time - The copy of the affidavit filed by the Commercial Tax Department in support of the Miscellaneous Application for condonation of delay of 933 days in re-presenting the appeal, has also not been filed by the petitioner before this Court. There are no error in the impugned order. The respondent was not under any impediment while condoning the delay of 568 days excluding the 365 days during the Covid-19 Pandemic as the Commercial Tax Department is overburdened with litigations and it is not easy to adhere the time lines - petition dismissed.

Summary

Issues:
Challenge to order of Tamil Nadu Sales Tax Appellate Tribunal condoning a delay of 933 days in re-presenting an appeal against an Assessment Order.

Analysis:
1. The petitioner challenged the impugned order of the Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench) which allowed the first respondent's petition to condone a delay of 933 days in re-presenting an appeal against an Assessment Order.

2. The Tribunal had partly allowed and partly dismissed the appeal filed by the petitioner against the Assessment Order dated 31.03.2017, leading to the first respondent filing an appeal with a delay of 118 days as per Section 58 of the TNVAT Act, 2006.

3. The Tribunal, by its impugned order, condoned the delay based on Regulation 6(5) of TNVAT Appellate Tribunal Regulation, 2011, allowing for registration of appeal after condoning the delay in representation, holding that the delay was satisfactorily explained.

4. The petitioner contended that the Tribunal erred in condoning the delay in a casual manner, citing a previous order where the Tribunal did not condone a similar delay. The petitioner sought interference under Article 226 of the Constitution of India.

5. The Court examined Section 58(1)(a) and the proviso to Section 58(1) of the TNVAT Act, 2006, which provide for the time limit to appeal and the conditions for condonation of delay, respectively.

6. Regulation 7(3) of the Tamil Nadu Value Added Tax Appellate Tribunal Regulations, 2011 deals with the registration of appeals and allows for the extension of time for remedying defects for sufficient cause.

7. The Court noted that the delay of 933 days included a lockdown period due to the Covid-19 pandemic, leaving 568 days of unexplained delay. It observed that the Commercial Tax Department faced challenges due to the pandemic and reorganizational issues post-GST implementation.

8. Ultimately, the Court found no error in the Tribunal's decision to condone the delay, as there was no restriction on time under Regulation 7(3) and the reasons for delay were considered satisfactory. The Court dismissed the Writ Petition, leaving it open for the Tribunal to decide on the sufficiency of cause for the initial delay of 118 days in filing the appeal.