The Bangalore Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that appellate authority can condone delay upto 30 Days as per Finance Act, 1994 after the expiry of 60 days which is the normal period for preferring appeal.
The appellant/assessee, Shri Santhosh Kumar Shetty Saja, explained the delay by stating that the appellant had “Diabetes mellites with Neuropathy Myalgia,” which caused low back pain and led to hospitalization as an inpatient from November 3, 2023, to June 30, 2024. He has included an affidavit and a copy of the medical certificate as proof. They argue that the appeal could not be lodged in time for medical reasons. The application’s justifications, which are backed up by an affidavit and a medical certificate, justify the delay.
The appeal was dismissed by the Commissioner (Appeals) on the grounds that the appeal was filed more than 90 days after the statutory term of 60 days plus the 30-day limit allowed under Section 85 of the Finance Act of 1994. The appeals were submitted to the Commissioner of Appeals after the ninety-day term, which is 60 days for the statutory period and 30 days for the condonable period, as stipulated in Section 85 of the Finance Act of 1994.
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“The legislature intended the appellate authority to entertain the appeal by condoning delay only up to 30 days after the expiration of 60 days, which is the normal period for preferring appeal,” noted the two-member bench consisting of Dr. D.M. Misra (Judicial Member) and R Bhagya Devi (Technical Member). Consequently, Section 5 of the Limitation Act is totally excluded.
While dismissing the appeal, the tribunal noted that the appeal must be filed within 60 days, but under the proviso, the appellate authority may provide an additional 30 days to hear the case. Section 35’s proviso to sub-section (1) makes it abundantly evident that the appellate body lacks the ability to permit the appeal to be presented after the 30-day limit. The wording makes it apparent that the legislature wanted the appellate authority to consider the appeal and only allow a delay of up to 30 days following the 60-day time that is typically allotted for prioritizing appeals.
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