Trichy Construction Company vs. The State Tax Officer Inspection Ii

Facts

The petitioner, Trichy Construction Company, filed a writ petition challenging an ex-parte demand order dated March 25, 2024, passed by the State Tax Officer (1st Respondent) under Section 74 of the TNGST Act, 2017, for the assessment year 2021-22. The petitioner also challenged the consequential rejection order dated March 10, 2025, by the Appellate Deputy Commissioner (2nd Respondent) which dismissed their appeal due to a delay of 70 days. The petitioner attributed the delay to the ill-health of its proprietor and reliance on a part-time accountant who failed to inform them about the assessment proceedings, preventing them from attending the personal hearing.

Held

The Court held that the petitioner had demonstrated reasonable cause for the delay of 70 days in filing the appeal before the second respondent. The Court considered the arguments presented by both the petitioner and the Government Advocate. The reasoning was based on the fact that the delay occurred solely due to the ill-health of the proprietor of the petitioner's concern. Consequently, the Court was inclined to condone the delay. The Court set aside the order of the appellate authority (second respondent) and directed the second respondent to take up the appeal and dispose of it on its merits after affording an opportunity of hearing to the petitioner. The ratio decidendi is that genuine hardship and ill-health can constitute reasonable cause for condoning delays in filing statutory appeals, provided such cause is demonstrated.

Key Issues

1. Whether the delay of 70 days in filing the appeal before the Appellate Deputy Commissioner (2nd Respondent) is to be condoned on the grounds of reasonable cause, specifically the ill-health of the petitioner's proprietor and lack of knowledge regarding assessment proceedings due to reliance on an accountant? (Mixed question of law and fact, turning on principles of condonation of delay). Petitioner's arguments: The petitioner contended that the delay was unavoidable due to the proprietor's ill-health and the failure of their part-time accountant to apprise them of the assessment proceedings, leading to an ex-parte order. They argued that this prevented them from participating in the assessment and filing the appeal within the stipulated time. Revenue's arguments: The Government Advocate for the respondents fairly submitted that if the Court finds sufficient and reasonable cause for the delay, appropriate orders may be passed.