2007 (9) TMI 572 - HC - VAT and Sales Tax

High Court overturns Tribunal's rejection of appeals for delayed filing under Tamil Nadu Sales Tax Act, mandates prompt tax payment.

Cochin Chemicals and Rubber Products Versus Registrar, Tamil Nadu Taxation Special Tribunal, Chennai and others

The High Court set aside the Tribunal's orders rejecting appeals for delay in filing beyond the statutory period under the Tamil Nadu General Sales Tax ... Delay in filing Appeal - Held that:- It is no doubt true that the appeals preferred were beyond the condonation period. Yet, considering the fact that the dispute involved in these writ petitions is with reference to claim on concessional levy of tax, this court feels that in the interest of justice, the petitioner be given an opportunity to agitate the assessments before the assessing authority. Hence, the impugned orders of the Tribunal are set aside on condition that the tax disputed in the writ petitions shall be paid by the assessee within a period of two weeks from the date of receipt of a copy of this order. The records pertaining to the claim of concessional levy of tax should be produced by the petitioner before the assessing authority thereafter within a period of two weeks. On such production of records, the assessing officer is directed to proceed further and complete the assessment in accordance with law. Issues:Challenging orders of Tamil Nadu Taxation Special Tribunal on delay in filing appeals beyond statutory period under section 31(1) of Tamil Nadu General Sales Tax Act, 1959.Analysis:The writ petitions were filed against the orders of the Tamil Nadu Taxation Special Tribunal dismissing the original petitions challenging the order of the first appellate authority. The petitioner sought to challenge the revised assessment orders, which were rejected due to the delay in filing the appeals beyond the statutory period prescribed under section 31(1) of the Tamil Nadu General Sales Tax Act, 1959.Assessment Orders and Tribunal Proceedings:Assessment orders for the years 1994-95 and 1995-96 were served on the assessee, followed by recovery proceedings. The assessee approached the Tribunal for various directions and received certified copies of assessment orders after delays. Appeals were filed beyond the prescribed period, leading to rejection by the Assistant Appellate Commissioner and later by the Tribunal.Grounds for Delay and Tribunal's Decision:The assessee cited poor health as the reason for the delay in filing appeals. The Tribunal rejected the petitions based on the delay beyond the prescribed period under section 31(1) of the Act, leading to the filing of writ petitions challenging the Tribunal's decision.Court's Decision and Directions:The High Court observed that the appeals were indeed beyond the condonation period but noted that the dispute involved concessional levy of tax. In the interest of justice, the Court set aside the Tribunal's orders, directing the assessee to pay the disputed tax within two weeks and produce relevant records for assessment. Failure to comply would confirm the Tribunal's orders.Payment Directions and Disposal of Writ Petitions:Additional orders directed the petitioner to deposit specific amounts within defined timelines. The Court disposed of the writ petitions, instructing compliance with payment directives. The connected matters were closed without costs.This detailed analysis covers the issues involved in the legal judgment, highlighting the key aspects of the case, Tribunal's decisions, grounds for delay, court's ruling, and payment directives issued by the High Court.