Condonation of delay in compounding applications was rejected where the statutory scheme fixed a strict filing period.

Delay in filing applications for benefit under the compounding scheme in section 7D of the U.P. Trade Tax Act could not be condoned by invoking section 5 of the Limitation Act. The scheme prescribed a fixed filing period and only a limited further period on payment of late fee and interest; the applications were filed even beyond that extended period. As the governing statute did not incorporate the Limitation Act, the principle of condonation of delay was inapplicable. The challenge to rejection of the compounding applications therefore failed, and the issue was treated as covered by binding precedent of the same Court.

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Issues: Whether delay in filing an application for benefit under the compounding scheme under section 7D of the U.P. Trade Tax Act, 1948 could be condoned by applying the principle of section 5 of the Limitation Act.

Analysis: The composition scheme fixed a prescribed period for filing the application and also allowed only a limited extended period on payment of late fee and interest. The applications in the writ petitions were filed beyond even the extended period. The governing statute did not incorporate the Limitation Act, and therefore the principle of condonation of delay could not be read into the scheme. The issue was treated as covered by the earlier binding decision of the same Court.

Conclusion: Delay in filing the application could not be condoned under section 5 of the Limitation Act, and the challenge to the rejection of the compounding application failed.

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