Limitation Period for Filing Appeal under Service Tax Counts From Actual Date of Service, Not Dispatch Date: CESTAT [Read Order]

The Allahabad Bench of Customs,Excise and Service Tax Appellate Tribunal ( CESTAT ) holds that the limitation period for filing an appeal under service tax counts  from the actual date of service of the order, not the date of dispatch.

In the case of Ashwani Kumar Raja, appellant-assessee, the tribunal noted that the Order-In-Original dated 05.03.2020 was dispatched on the same day. The assessee claimed non-receipt of the order due to a change in address, but failed to provide any proof of having informed the Department about the new address.

The appellate tribunal observed that the address mentioned in the appeal form was “Bina Road, Auri, Anpara, Sonbhadra, Uttar Pradesh.” It also pointed out that the order was dispatched during the peak of the COVID-19 lockdown, when the Supreme Court had directed all forums to condone delays in filing appeals.

The bench held that this binding direction should have been considered by the Commissioner (Appeals) before dismissing the appeal as not maintainable. It further noted that no proof was provided regarding service of the speed-post.

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The appellate tribunal referred to Central Board of Indirect Taxes and Customs (CBIC)’s instructions dated 16.03.2023, which clarified that for calculating the limitation period under Section 35(1) of the Central Excise Act, the relevant date is the date of service of the order, not the date of dispatch. It relied on a CESTAT decision that held the appeal period should be counted from the date the order was actually received, as shown by postal tracking records.

A single member bench comprising P.K Choudhary (Judicial Member) noted that in this case, the assessee received the Order-In-Original on 11.07.2023 and filed the appeal on 08.09.2023, which was within the 60-day limit.

Given these facts, the tribunal remanded the matter to the Commissioner (Appeals) for a fresh decision on merits. The assessee was directed to cooperate and avoid delays. All issues were kept open, and the appeal was allowed by way of remand.

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