2014 (7) TMI 619 - HC - VAT and Sales Tax

Condonation of delay - Inordinate delay of 210 days - Held that - though like any other litigant, the State authorities are also equally bound by the law of limitation, recognizing certain elements of public interest and the impersonal and slow moving machinery of the Government, the courts have moulded their approach, while considering request of the State for condoning the delay, in the present case, as already noticed, explanation in the form of administrative clearances and consumption of time in the office of the Government Pleader in preferring the appeals are pressed in service for explaining the delay. Further, the duty amount involved in the appeal is also substantially large. Considering these aspects of the matter, delay is condoned by awarding cost - Following decision of Special Tehsildar, Land Acquisition, Kerala v. K.V. Ayisumma 1996 (7) TMI 551 - SUPREME COURT - Delay condoned.

Summary

Issues:
Delay in preferring a tax appeal challenging the judgment and order passed by the Gujarat Value Added Tax Tribunal.

Analysis:
The State of Gujarat filed an application under section 5 of the Limitation Act to condone a delay of 210 days in filing a tax appeal against the Tribunal's judgment. The delay was attributed to administrative processes within the Department, including obtaining approvals and drafting the appeal. The State argued that the appeal involved a substantial amount and could affect similar cases with significant revenue implications. Reference was made to relevant legal precedents supporting the condonation of delay based on the nature of the case and the amount in question.

The respondent opposed the application, claiming that the delay was inadequately explained. Citing legal judgments, the respondent argued against condoning the delay due to the significant duration and lack of sufficient justification provided. The court noted the importance of considering the amount at stake and the impact on similar cases in deciding whether to condone the delay. Reference was made to a previous Division Bench decision that had condoned a delay of 732 days in a similar case involving substantial revenue.

The court acknowledged the need to balance technicalities with substantial justice, especially in cases involving government entities. Various legal principles were cited to support the view that delays in government appeals should be considered with pragmatism and a justice-oriented approach. The court emphasized the importance of deciding cases on their merits, particularly when public interest and substantial revenue are at stake. The decision highlighted the inherent delays in governmental processes and the need for a nuanced approach in condoning delays in such cases.

Based on the precedents, the court allowed the application and condoned the delay in filing the tax appeal. The decision was influenced by the substantial revenue involved, the administrative processes within the government department, and the legal principles supporting a pragmatic approach in considering delays in government appeals. The court imposed a cost to be paid to the respondent as a consequence of the delay condonation.