Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

PJ/CASE-LAW/2015-16/2758

Delay in filing appeal is condonable only on satisfactory cause.

Case:-COMPETENT AUTOMOBILES CO. LTD. VERSUSCOMMR. OF SERVICE TAX, NEW DELHI
 
Citation:-2015 (38) S.T.R. 238 (Tri. - Del.)
 
Brief facts:-The assessee preferred this appeal on 3rd April 2013 against the Order-in-Original No. 33/VKG/2007, dated 27-9-2007 passed by the Commissioner (Service Tax), New Delhi confirming Service Tax levy of Rs. 1,26,48,080.91 apart from interest under Section 75 for providing Business Auxiliary Service during February 2004 to March 2006, on the gross commission received from Maruti Finance, a unit of Maruti Udyog Ltd. Rs. 24,65,694.27 already remitted by the assessee was appropriated and is so recorded in the order.
Against the adjudication order, the assessee filed writ petition (Civil No. 8089/2012) along with miscellaneous application No. 20133 of 2012 before the Delhi High Court. By the order dated 21-12-2012, the High Court dismissed the writ petition as withdrawn, granting liberty to seek appropriate statutory remedies by way of rectification and/or revision as the case may be, in terms of such request addressed by the Counsel for the appellant herein, before the High Court.
Thereafter the assessee filed Service Tax Appeal No. 4175 of 2012 against a notice demanding remittance of the adjudicated liability. This appeal was dismissed as withdrawn on 19-3-2013 granting liberty to the assessee to file an appeal challenging the adjudication order. Thereafter the present appeal was filed on 3-4-2013. The assessee seeks condonation of a delay of 1916 days, pleading the above circumstances as justification therefore.
 
Appellant’s contention:-Ld. Counsel for the appellant refers to the judgment in Esha Bhattacharjee v. Managing Committee of Raghunathpur Nafar Academy & Ors. - 2014 All India Services Law Journal (page 20) for the proposition that the expression “sufficient cause” in the statute of limitation must receive a liberal construction; the principles governing limitation should apply appropriately, depending on the facts and circumstances of a given case; that once a valuable right has accrued in favour of one party as a result of the failure of the other party to explain the delay by showing sufficient cause and its own conduct, it will be unreasonable to take away that right on the mere asking of the applicant, particularly when the delay is directly a result of negligence, default or inaction of that party; that justice must be done to both parties equally; however, there should be a liberal, pragmatic, justice-oriented and a non-pedantic approach applied for consideration of an application for condonation of delay.
 
Respondent’s contention:- In 1968, a Constitution Bench in Trilokchand Motichand and others - AIR 1970 Supreme Court 898 an occasion to consider whether belated or stale claims are bound to be considered when presented in a writ petition filed under Article of the Constitution. Chief Justice Hidyatulla in concurring opinion (with concurrences recorded by Justices Bachawat and Mitter; Justices Hegde and Sikri dissenting) clearly ruled that the Court will not inquire into belated and stale claims or take note of evidence of neglect of one’s own rights for a long time. Majority pointed out that the Court would not only but should not entertain the stale claim. Court ruled that utmost expedition is the sine qua non for presenting the claim for adjudication; the party aggrieved must move the Court at the earliest possible time to explain satisfactorily all semblance of delay.
 
Reasoning of judgment:- In the facts and circumstances of this case, it is apparent that the adjudication order dated 27-9-2007 was challenged by the assessee by way of writ petition in 2012 after lapse of five years and withdrew the writ petition, obtaining liberty to pursue appropriate statutory remedies. Thereafter, the assessee filed an appropriate appeal against the order of demand and not the adjudication order. This appeal was dismissed as withdrawn on 19-3-2013. Thereafter is the present appeal filed on 3-4-2013 with a delay of nearly six years (1916 days). The adjudication order dated 27-9-2007 is to be nullity for patent lack of jurisdiction. It is a formal order passed by the authority exercising statutory powers authorizing assessment of Service Tax liability. Finance Act, 1994 clearly provides an appellate remedy to be pursued within three months from the date of order of which the assessee is aggrieved.
In the circumstances, the petitioner/assessee cannot gainfully contend that it had a reasonable or bona fide reason in not pursuing the appellate remedy, within limitation period of three months. This application does not plead any satisfactory cause for condonation of the delay of 1916 days in preferring appeal.
In the aforesaid circumstances, there are no merits nor any satisfactory cause shown for condoning the delay. The application for condonation of delay is therefore dismissed. Consequently, the appeal stands rejected.
 
Decision:-Application dismissed/Appeal rejected
 
Comment:- The analogy of the case is that assessee cannot gainfully contend reasonable cause or bona fide reason in not pursuing appropriate remedy within limitation period of 3 months without proving the same. The present application fails as there was no satisfactory cause for delay. This indicates that every delay cannot be condoned unless and until it is supported by valid and genuine reasons.
 
Prepared by:- Monika Tak

Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com