Rejection of admission of appeal on ground of belated payment of upheld, HC

Facts in Brief:

1. The petitioner, a limited company, is an assessee on the rolls of the 4th respondent and is a registered dealer both under the A.P. VAT Act and the CST Act. Pursuant to an audit of the petitioner undertaking on 18.02.2008, the 3rd respondent issued show cause notice dated 30.12.2008 proposing to levy a higher rate of tax on a turnover of Rs.10.78 crores on the ground that concessional rate of tax could not be allowed as the petitioner had not filed the C declaration forms.

2. An assessment order came to be passed on 28.02.2009.

3. Aggrieved thereby, the petitioner preferred an appeal on 03.04.2009 which was rejected by the 2nd respondent, by his order dated 19.06.2014, on the ground that he, as the first appellate authority, could not consider admission of an appeal if the appellant failed to produce proof of payment of the admitted tax, and 12.5% of the disputed tax, within sixty days from the date of receipt of the assessment order including the condonable delay period of thirty days; as the petitioner had paid the amount, 478 days after receipt of the order of assessment, the delay could not be condoned and the appeal could not be admitted; as held in M/s. Zuari Cements Limited v. State of A.P. , a statutory authority could not deviate from the prescribed statutory requirement;

4. A Division Bench of the High Court, in Ankamma Trading Company v. The Appellate Deputy Commissioner , had held that admission of an appeal, filed before the Appellate Deputy Commissioner, was liable for rejection if payment of the admitted tax/12.5% of the disputed tax was made beyond the period of sixty days from the date of receipt of a copy of the assessment order; and as the petitioner had failed to comply with the prescribed statutory requirement, while filing a statutory appeal under Section 31 of the A.P. VAT Act, the appeal preferred by them could not be admitted. Accordingly, admission of the appeal was rejected.

On appeal HC held,

5. The proceedings of the 2nd respondent dated 19.06.2014, rejecting admission of the petitioners appeal on the ground of belated payment of 12.5% of the disputed tax beyond the prescribed period for filing an appeal under Section 31 of the A.P. VAT Act, is in accordance with the law declared by the Division Bench of this Court in Ankamma Trading Company2, and as the said Division bench judgment is binding on a coordinate bench, no interference is called for in proceedings under Article 226 of the Constitution of India.

6. The Writ Petition fails and is, accordingly, dismissed. 

Case Reference - M/S.Ideal Detonators Private ... vs The Government Of Telangana Rep.