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of <h1>High Court dismisses writ petition challenging assessment order but allows petitioner to file delayed appeal</h1> The HC dismissed a writ petition challenging an assessment order but granted liberty to file an appeal. The petitioner argued they awaited suo motu ... Challenge to impugned assessment order - petitioner was under the impression that suo motu rectification will be done by the respondent and awaited for the rectified order - HELD THAT:- It is evident that in the summary order dated 31.08.2024, inadvertently the tax liability towards CGST and SGST have been reflected as Rs.23,86,607/- instead of Rs.2,38,670/- and according to the petitioner they were under the impression that suo motu rectified assessment order will be passed and awaited for the same and lost the opportunity of filing appeal. As the reason stated by the petitioner for not preferring an appeal on time appears to be genuine, therefore, this Court is inclined to grant liberty to the petitioner to file appeal. This writ petition stands dismissed with liberty to the petitioner to file an appeal against the impugned assessment order. 1. ISSUES PRESENTED and CONSIDEREDThe core legal questions considered by the Court in this matter include:- Whether the petitioner was justified in not filing an appeal against the impugned assessment order within the prescribed time due to an inadvertent error in the summary order reflecting tax liability figures incorrectly.- Whether the petitioner's claim that they awaited a suo motu rectification by the respondent, and thereby lost the opportunity to file an appeal, constitutes sufficient cause to grant relief.- Whether the petitioner should be granted liberty to file an appeal out of time against the impugned assessment order, and if so, on what terms and conditions, particularly regarding the pre-deposit of disputed tax amounts.- The appropriate procedural directions to be issued to the appellate authority with respect to the limitation and acceptance of the appeal.2. ISSUE-WISE DETAILED ANALYSISIssue 1: Justification for Delay in Filing Appeal Due to Inadvertent Error in Tax Liability FiguresRelevant Legal Framework and Precedents: The limitation for filing appeals against tax assessment orders is generally prescribed under relevant tax statutes and procedural rules. Courts have consistently held that delay in filing appeals must be satisfactorily explained and that inadvertent errors or bona fide mistakes can constitute sufficient cause for condonation of delay.Court's Interpretation and Reasoning: The Court examined the petitioner's contention that the summary order dated 31.08.2024 incorrectly reflected the CGST and SGST liabilities as Rs.23,86,607/- each instead of the correct figure of Rs.2,38,607/- each. This gross discrepancy led the petitioner to believe that the respondent would rectify the error suo motu. The petitioner therefore awaited such rectification and did not file an appeal within the prescribed time.Key Evidence and Findings: The detailed order dated 31.08.2024 correctly stated the tax liabilities as CGST Rs.2,38,607/-, SGST Rs.2,38,607/-, and IGST Rs.3,64,526/-, totaling Rs.8,41,740/-. The summary order, however, inadvertently showed CGST and SGST as Rs.23,86,607/- each, inflating the total to Rs.51,37,740/-. This discrepancy was not corrected by the respondent, causing confusion and delay.Application of Law to Facts: The Court found the petitioner's explanation genuine and reasonable. The petitioner's reliance on the expectation of suo motu rectification by the respondent was a bona fide mistake arising from the respondent's error. This constituted sufficient cause for the delay in filing the appeal.Treatment of Competing Arguments: The respondent did not dispute the inadvertent error but sought instructions regarding the petitioner's request for liberty to file an appeal. The Court balanced the petitioner's genuine mistake against the respondent's position and procedural requirements.Conclusions: The Court accepted the petitioner's justification for the delay and found it appropriate to grant liberty to file an appeal despite the lapse of the limitation period.Issue 2: Granting Liberty to File Appeal Out of Time and Conditions ThereonRelevant Legal Framework and Precedents: Courts possess discretionary power to condone delay and allow appeals to be filed out of time, subject to conditions such as pre-deposit of tax dues. The principle is to balance the interests of revenue with the right of the taxpayer to be heard on merits.Court's Interpretation and Reasoning: The Court noted that the petitioner sought liberty to file an appeal on any terms, including additional pre-deposit. The respondent requested time to obtain instructions but did not oppose the grant of liberty if conditions were imposed.Key Evidence and Findings: The disputed tax demand was Rs.8,41,740/-. The petitioner was directed to make an additional 5% pre-deposit over and above the existing 10%, totaling 15% of the disputed amount, as a condition for filing the appeal.Application of Law to Facts: The Court exercised its discretion to impose a condition of additional pre-deposit to safeguard the revenue while allowing the petitioner to pursue the appeal on merits. This condition also incentivizes timely compliance and mitigates revenue risk.Treatment of Competing Arguments: The Court accommodated the petitioner's request for liberty while addressing the respondent's concern for securing tax dues through the pre-deposit condition.Conclusions: Liberty to file the appeal was granted subject to the condition of making a 15% pre-deposit within three weeks of the order.Issue 3: Directions to the Appellate Authority Regarding Limitation and Appeal AdmissionRelevant Legal Framework and Precedents: Appellate authorities are bound to consider appeals on merits if the Court grants condonation of delay and directs admission despite limitation. The procedural fairness requires that limitation should not be a bar in such circumstances.Court's Interpretation and Reasoning: The Court directed that the appellate authority shall admit the appeal without insisting on limitation and provide a fair opportunity to the petitioner to establish their case on merits.Key Evidence and Findings: The petitioner's failure to file the appeal timely was due to a genuine error by the respondent in the assessment order. The Court emphasized the need for the appellate authority to consider the appeal substantively.Application of Law to Facts: The Court's direction ensures that procedural technicalities do not deny the petitioner a hearing and that the appeal is adjudicated on the substantive issues.Treatment of Competing Arguments: No opposition was raised against this direction. It aligns with principles of natural justice and procedural fairness.Conclusions: The appellate authority is mandated to take the appeal on record without limitation objection and hear the matter on merits.Issue 4: Direction for De-freezing of Bank Account Upon Payment of Pre-DepositRelevant Legal Framework and Precedents: Tax authorities often freeze bank accounts pending tax recovery. Courts have held that upon compliance with pre-deposit conditions, relief such as de-freezing of accounts should be granted to avoid undue hardship.Court's Interpretation and Reasoning:
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