Delay in Filing Appeal by 23 Days as Director was Abroad: CESTAT directs Re-Adjudication to Decide on Condonation of Delay [Read Order]

The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed re-adjudication to decide in the matter of condonation of delay as there was delay in filing appeal by 23 days as the Director of the company was abroad.

The appellant in the present matter is M/s E L Sewedy Electrometer (P) Ltd. The only issue that is required to be considered in this appeal is as to whether the Commissioner (Appeals) was justified in rejecting the appeal of the appellant on the ground of limitation. Commissioner (Appeal) has been authorized under the Central Excise Act, 1944 to condone the delay up to 30 days in filing the appeal.

The Commissioner (Appeals) noted that the reason for condonation of delay given by the Appellant is very contradictory and irrational for not filing the appeal within the prescribed time limit. The appellant has not been able to satisfy the Commissioner this regard through their evidence and hence held that the reasons mentioned for condonation of delay is neither proper nor sufficient and in the facts and circumstances of the case and dismissed the application.

The Authorized Representative submitted that the director of Company has left the country after one month from the date of receipt of the order. The decision of filing of appeal could have been taken within one month before the Director left the country. Accordingly, the Commissioner (Appeals) was fully justified in condoning the delay and dismissing the appeal filed by the appellant.

A Single Bench of Sanjiv Srivastava, Technical Member observed that “It is settled law for such technicalities right of appeal - to be heard by a Competent Appellate Authority, as statutorily provided should not be withered away. Commissioner (Appeals) in this case by not allowing the application for condonation of delay has denied the opportunity to the appellant to put his case on merits in appeal filed. There is enough reason to justify the delay of twenty three days ideally such delay should have been condoned and appeal heard on merits.”

“Accordingly, I do not find any merits in this order of Commissioner (Appeals) dismissing the appeal of the appellant on grounds of limitation after dismissing his application for condonation of delay. The matter needs to be remanded back to Commissioner (Appeals) for decision on merits in appeal that was filed by the appellant before him” the Tribunal concluded.

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