High Court reinstates appeals by M/s. Artex Infra Projects due to delayed tax deposit, citing Supreme Court ruling

The High Court overturned the Appellate Deputy Commissioner's dismissal of appeals by M/s. Artex Infra Projects for failing to pay the disputed tax deposit on time. Relying on a Supreme Court ruling, the Court held that delayed deposits should be condoned if the appeal is filed within the limitation period. The Appellate Deputy Commissioner's decision was deemed erroneous, and the appeals were reinstated for consideration on their merits. The Commissioner was instructed to resolve the appeals promptly in accordance with the Supreme Court's directive. The writ petitions were granted, and no costs were imposed.

---

---

Issues:
1. Dismissal of appeals by the Appellate Deputy Commissioner due to non-payment of statutory deposit within time.
2. Interpretation of legal position regarding delayed deposit of disputed tax amount for filing appeals.

Analysis:
1. The petitioner, M/s. Artex Infra Projects, challenged assessment orders related to tax periods 2013-14 and 2014-15 under the Telangana Tax on Entry of Goods into Local Areas Act, 2001. Their appeals were dismissed by the Appellate Deputy Commissioner for not paying the 12.5% disputed tax amount deposit on time. The Commissioner held that the delay in deposit could not be condoned, leading to the dismissal of the appeals.

2. The High Court found the Commissioner's understanding incorrect based on a Supreme Court judgment in M/s. S.E. Graphites Private Limited v. State of Telangana. The Supreme Court decision impliedly overruled a previous High Court judgment and established that if an appeal is filed within the limitation period but the deposit is made late, the delay should be condoned, and the appeal should be decided on merits. Therefore, the Appellate Deputy Commissioner erred in rejecting the appeals solely based on delayed deposit.

3. In light of the established legal position, the High Court set aside the orders of the Appellate Deputy Commissioner and restored the appeals to be heard on merits. The Commissioner was directed to dispose of the appeals within thirty days from the date of the court's order, following the Supreme Court's directive in M/s. S.E. Graphites Private Limited case. The writ petitions were allowed, and pending petitions were closed without any costs being imposed.

---