Case Law Details
Royal Sanitations Vs Commissioner of Commercial Tax (Allahabad High Court)
Introduction: The Allahabad High Court recently addressed a significant legal matter concerning the condonation of a 1365-day delay in filing a tax appeal. The court’s decision, dated July 21, 2022, is under scrutiny, raising questions about the legal justification for such a lengthy delay.
Detailed Analysis: The central issue revolves around whether the Commercial Tax Tribunal was legally justified in condoning the delay and allowing the appeal. The revisionist’s counsel argued against the condonation, citing a prior judgment that emphasized the inadmissibility of vague and generic grounds for such inordinate delays.
On the contrary, the State’s counsel asserted that the Tribunal, in its order, considered the reasons provided for the delay, including a shortage of employees, engagement in election duties, and the impact of the COVID-19 pandemic. The counsel referenced a Supreme Court judgment (N. Balakrishnan v. M. Krishnamurthy) highlighting that the acceptability of the explanation, rather than the length of the delay, is the crucial criterion for condonation.
The Tribunal’s order meticulously examined the specific circumstances, such as the spread of COVID-19 and employees’ involvement in election duties, justifying the delay. It also addressed the relevance of Rule 39 of the U.P. VAT Rules regarding the maintenance of account books by the assessee.
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