Delhi High Court
Rosa Traders Pvt. Ltd. vs Commissioner Of Value Added Tax, ... on 17 October, 2014
$~9
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: October 17, 2014
+ ST.APPL. 56/2014
ROSA TRADERS PVT. LTD.
..... Petitioner
Through Mr.A.K.Babbar,Advocate with
Mr.Surinder Kumar, Advocate
versus
COMMISSIONER OF VALUE ADDED TAX, DELHI
..... Respondent
Through Mr.Vivek Kumar Tandon,
Advocate
CORAM:
HON'BLE MR. JUSTICE SANJIV KHANNA
HON'BLE MR. JUSTICE V. KAMESWAR RAO
SANJIV KHANNA, J (ORAL)
Having heard the counsel for the parties, we are inclined to
frame the following substantial question of law:
"Whether the Appellate Tribunal, Value Added Tax was
justified and right in dismissing the appeal filed by the
appellant Rosa Traders Pvt. Ltd. for failure to deposit the
entire amount of Rs. 2 lakhs? "
2. With the consent of the parties, we take up the appeal for
hearing as only a short issue arises for consideration.
3. The appellant herein had preferred an appeal before the
Appellate Tribunal, Value Added Tax. The appeal pertained to the
taxable period 1995-96. Apparently, there have been several rounds
of appeals and remand before the present appeal was filed before the
Appellate Tribunal.
4. By order dated 12.06.2007 of the Appellate Tribunal, Value
Added Tax, the appellant was directed to deposit Rs. 2 lakhs as a
precondition for hearing and deciding the appeal on merits. The said
pre-condition imposed has been upheld by the High Court. In the
meanwhile, the appellant deposited Rs. 40,000/- and Rs. 45,000/- on
28.09.2007 and 30.10.2007, respectively. Further, payments of Rs.
20,000/- & Rs. 20,000/- and Rs. 15,000/- were made on 26.07.2010 &
29.07.2010 and 16.11.2010, respectively. However, balance payment
of Rs. 60,000/- remained outstanding. In the meanwhile, the appeal
itself was listed before the Appellate Tribunal on 21.02.2014 to be
dismissed under Section 43(5) of the Delhi Sales Act, 1975.
Thereupon, the appellant deposited Rs. 45,000/- and Rs. 15,000/- on
16.03.2014 and 21.03.2014 to make up for the balance amount and
reach the figure of Rs. 2 lakhs. Review application was thereafter
filed, but stands dismissed.
5. It is pleaded and stated in the present appeal that the appellant
has closed and stopped their business activities and the person in
charge is an old man more than 85 years of age. The lapse and default
on the part of the appellant, because of the delay in depositing Rs. 2
lakhs is accepted. It is pointed out that the total quantum of additions,
which were subject matter of challenge before the Appellate Tribunal
is Rs.39,40,971/-. It is submitted that in case the appeal is not heard
and decided on merits, the appellant will be burdened with the huge
liability, which, keeping in view the old age and financial position, the
company may not be able to meet and the person in charge would face
penurious situation. Noticing these facts while issuing notice vide
order dated 09.09.2014, we had asked the appellant, whether they
could deposit a further amount. Learned counsel for the appellant has
stated that they would deposit another amount of Rs. 50,000/- and a
challan would be produced. Today, during the course of hearing,
learned counsel for the appellant has produced before us photocopy of
the two challans dated 17.09.2014 and 19.09.2014 of Rs. 25,000/-
each, totalling to Rs. 50,000/-, whereby the said amount stands
deposited. Keeping in view the aforesaid facts and also noticing the
advanced age of the person in charge, we are inclined to allow the
appeal and to answer the question of law in favour of the appellant.
The question of law is accordingly decided. The appeal is restored to
be decided on merits by the Appellate Tribunal, Value Added Tax. To
cut short the delay, the parties are directed to appear before the
Appellate Tribunal, Value Added Tax on 26.11.2014, when a date of
hearing will be fixed.
Order dasti.
SANJIV KHANNA, J
V. KAMESWAR RAO, J
OCTOBER 17, 2014/akb
