2015 (12) TMI 714 - HC - VAT and Sales Tax

Condonation of delay - Delay of 59 days - Delay due to ill health - Held that - In view of the fact that the petitioner has filed the appeal with 59 days delay and the reason for the said delay was due to the ill health of the petitioner, which is supported by the Certificate given by the Doctor annexed in the typed set of papers and having been satisfied with the reasons stated in the affidavit filed in support of the writ petition and in the interest of justice, and considering the fact that one of the ground raised by the petitioner in this writ petition is that there is violation of principles of natural justice to the extent of not providing an opportunity of personal hearing before passing the assessment order, this Court is of the view that the delay may be condoned and the appellate authority may be directed to entertain the appeal since this Court is of the considered view that the matter has to be dealt with by the appellate authority on merits. - by condoning the delay, this Court permits the petitioner to re-present the appeals before the appellate authority within a period of two weeks from the date of receipt of a copy of this order and on such re-presentation, the appellate authority is directed to entertain the same and pass orders on merits and in accordance with law - Delay condoned.

Summary

Issues:
1. Opportunity of being heard before passing assessment order.
2. Delay in filing appeal and condonation of delay.

Issue 1: Opportunity of being heard before passing assessment order
The petitioner, a registered distributor, challenged the assessment order issued by the 2nd respondent without being given an opportunity to be heard. The petitioner received a notice proposing a tax levy on discounts received, to which a reply was submitted requesting a hearing. Despite this, the assessment order was passed confirming the tax liability and imposing a penalty. The petitioner argued that the order violated instructions from the Commissioner of Commercial Taxes, which mandate providing an opportunity to the dealer before revision. The petitioner contended that the assessment order was unjust as it was passed without a hearing, contrary to statutory provisions.

Issue 2: Delay in filing appeal and condonation of delay
The petitioner filed an appeal challenging the assessment order after a delay of 59 days due to the petitioner's ill health, specifically viral hepatitis. The appellate authority, empowered to condone only a 30-day delay, rejected the appeal as time-barred. The petitioner sought condonation of the delay, citing medical evidence supporting the illness during the relevant period. The petitioner's counsel argued that the delay was not intentional and should be excused, emphasizing the need for substantial justice. The counsel relied on legal precedents, including judgments from the Supreme Court and High Courts, to support the contention that delays due to genuine reasons, such as illness, should be condoned to ensure justice is served.

Judgment Summary:
The High Court of Madras, after considering the arguments presented by both parties, acknowledged the delay in filing the appeal but recognized the petitioner's health condition as a valid reason for the delay. The Court emphasized the importance of adhering to principles of natural justice and providing an opportunity for a hearing before passing orders. Therefore, the Court decided to condone the delay and directed the appellate authority to entertain the appeal, allowing the petitioner to re-present the appeals within two weeks. The Court emphasized that matters should be dealt with on their merits and in accordance with the law, ensuring justice is served without imposing any costs.