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2024 (3) TMI 400 - HC - VAT and Sales TaxCondonation of delay in filing rectification application - Refusal to entertain the rectification application of the petitioner on the ground that the same was time barred - attachment of bank account - HELD THAT - It is to be noted that the Supreme Court in In Re Cognizance for Extension of Limitation 2022 (1) TMI 385 - SC ORDER allowed the limitation to be extended till February 28, 2022. The petitioner, in the present case, has filed the application on March 11, 2022, that is, only 11 days after the end of the above period. Furthermore, petitioner s case is that it was not made aware of the order dated March 18, 2017 and it came to know about the said order only on September 14, 2021 when its bank account was attached. Without going into hyper technicality with regard to period of limitation, this Court keeping in mind the Supreme Court judgment for extension of period of limitation and the fact that Section 5 of the Limitation Act would apply to Section 31 of the VAT Act is of the view that the delay in filing the rectification application should be condoned. In light of the same, the order dated April 6, 2022 passed by the Tribunal is quashed and set aside with a direction upon the Tribunal to hear the rectification application of the petitioner on merit and decide the same within four months from date. Petition allowed.
Issues:
The issues involved in the judgment are the refusal of the Commercial Tax Tribunal to entertain the rectification application on the ground of being time-barred, the typographical error in the original order passed by the Tribunal, and the applicability of Section 5 of the Limitation Act to Section 31 of the Uttar Pradesh Value Added Tax Act. Refusal to Entertain Rectification Application: The petitioner filed a writ petition under Article 226 of the Constitution of India challenging the order of the Commercial Tax Tribunal dated April 6, 2022, which refused to entertain the rectification application on the basis of being time-barred. The petitioner argued that it was not aware of the original order passed by the Tribunal on March 18, 2017 until September 14, 2021 when its bank account was attached. The petitioner contended that a typographical error in the original order, where the figure should have been Rs. 34,04,333/- but was mistakenly mentioned as Rs. 30,04,333/-, was not its fault. The petitioner asserted that Section 5 of the Limitation Act should apply to the case since there was no provision for extension of the time period in Section 31 of the VAT Act. Application of Section 5 of the Limitation Act: The petitioner argued that in cases where there is no provision for extension of the time period in taxation statutes, Section 5 of the Limitation Act should be applicable. The petitioner relied on the absence of any expressed or implicit bar of application of Section 5 of the Limitation Act to Section 31 of the VAT Act. The petitioner contended that the delay in filing the rectification application should be condoned, especially considering the Supreme Court's judgment allowing extension of limitation till February 28, 2022, and the fact that the petitioner filed the application on March 11, 2022, only 11 days after the extended period. Court's Decision: The High Court, after considering the Supreme Court judgment on the extension of the limitation period and the applicability of Section 5 of the Limitation Act to Section 31 of the VAT Act, held that the delay in filing the rectification application should be condoned. The Court quashed and set aside the order of the Tribunal dated April 6, 2022, and directed the Tribunal to hear the rectification application on merit and decide the same within four months from the date of the judgment. Consequently, the writ petition was allowed by the Court.
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