Delay in filing Customs Appeal by Sick Company during pendency of Matter before BIFR is 'Reasonable': CESTAT Condones Delay of 2644 Days [Read Order]

The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), while condoning a delay of 2644 days, has held that the delay in filing appeal by a sick company during the period of pendency of matter before the BIFR under the Sick Industrial Companies (Special Provisions) Act (SICA) 1987 can be treated as a “reasonable cause.”

The appellants, Royal Cushion, is a sick company. The applicant was pursuing the matter before the BIFR under the Sick Industrial Companies (special Provisions) Act, 1985. The appeal filed before the appellate authority was dismissed due to a huge delay.

The Tribunal bench comprising Mr. S K Mohanty (Judicial Member) and P Anjani Kumar (Technical Member) has held that there is no negligence on the part of the appellant in not filing of appeal within stipulated time frame provided under the statute. In so far as the issue of condonation of delay is concerned, the Tribunal is not only required to look at the period of delay but is also required to examine the qualitatively, as to whether the reasons set out for seeking the condonation of delay are genuine and bona fide.

Granting an interim relief to the assessee, the Tribunal held that “on going through the case records, we are convinced that the delay occurred in filing the appeal is genuine and satisfactory explanation was furnished by the applicant in support of condonation of the same. Therefore, the present miscellaneous application filed by the applicant is considered and accordingly, the delay caused in filing the appeal before the Tribunal is condoned. Registry is directed to assign the number to the appeal filed by the applicant and list the same for final hearing in due course of time.”

Mr. V Reghuraman, Advocate appeared for the appellant-assessee.

To Read the full text of the Order CLICK HERE

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