2023 (8) TMI 5 - HC - VAT and Sales Tax

Maintainability of petitioner's original appeal - time limitation - appeal was in prescribed format or not - HELD THAT - The petitioner had instituted the appeal against the common assessment order (CST and VAT) dated 27.04.2017 and 12.07.2017. This was admittedly within the prescribed period of limitation. However, because of the confusion due to the filing of the consolidated appeal, the VAT appeal may not have been in the prescribed format. Therefore, the VAT appeal in the prescribed format was placed on record on 15.04.2019 for the convenience of the appellate authority. Such placement does not amount to originally instituting the appeal. Therefore, the approach of the first appellate authority was rather hyper-technical. The appeal should have been following the law rather than nonsuiting the petitioner based on such technicality. A valuable right of appeal on merits should not have been denied for such hyper-technical considerations. When technical and substantive concerns are pitted against one another, the latter must prevail over the former. The Administrative Tribunal also failed to appreciate the matter from this perspective, and therefore, these orders warrant interference. The impugned order set aside - petitioner's appeal restored - appeal disposed off.

Summary

Issues involved:
The judgment deals with the challenge against orders dismissing the original appeal on the ground of limitation under the Goa Value Added Tax Act, 2005.

Summary:

Challenge against Assessment Orders:
The petitioner challenged orders dated 14.10.2019 and 24.09.2020 by the first and second appellate authorities, which dismissed the original appeal against the assessment order dated 27.04.2017 under the Goa Value Added Tax Act, 2005, citing limitation as the reason.

Confusion in Filing Appeals:
The petitioner filed an appeal on 12.07.2017 against the assessment order dated 27.04.2017 but not in the prescribed format, leading to confusion as a consolidated appeal regarding CST and VAT assessments was filed. The CST appeal was in the prescribed format, while the VAT appeal was not. The petitioner later placed the formatted VAT appeal on record.

Dismissal Based on Limitation:
The first appellate authority dismissed the appeal solely on the ground that the appeal memo was filed after the service of the assessment order, ignoring the unformatted appeal filed within the limitation period. The second appellate authority (Administrative Tribunal) also dismissed the appeal.

Judgment and Restoration of Appeal:
The High Court set aside the impugned orders and restored the petitioner's VAT appeal before the first appellate authority for disposal on merits and in accordance with the law. Emphasizing that substantive concerns should prevail over hyper-technical considerations, the court directed the first appellate authority to issue a notice to the petitioner and dispose of the appeal following the law and on its own merits. The rule was made absolute without any cost order.