No Gross Negligence or Lack of Bona Fides by Importer: Delhi HC Condones Delay in Filing Appeal Before CESTAT [Read Order]

The Delhi High Court has condoned the delay in filing an appeal before the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) by Siddhi Vinayak Importers, observing that there was no gross negligence, deliberate inaction, or lack of bona fides on the part of the appellant.

The appellant-assessee, Siddhi Vinayak Importers, a partnership firm engaged in the import and trade of fabrics from China and Hong Kong, had sought amendment of its bills of entry to claim the benefit under Notification No. 30/2004-CX. However, its request was rejected by the Deputy Commissioner of Customs on 23rd July 2021, citing that the goods had already been out of charge and the self-assessment had attained finality.

Aggrieved by this decision, the firm approached the Commissioner of Customs (Appeals), which upheld the rejection on 29th March 2022, finding that the assessing authority had rightly refused amendment under Section 149 of the Customs Act, 1962.

The importer then appealed before the CESTAT, but the Tribunal dismissed the appeal on the grounds of a 273-day delay, holding that the explanation for such delay was not adequately supported or explained.

The appellant, before the High Court, contended that the delay was due to a change of counsel and other procedural reasons, and that there was no intentional negligence. The Revenue argued that the delay was not condonable under Section 129A(3) of the Act.

The Court examined Section 129A(5) of the Act and relied upon the principles laid down in M/s J.M. Ramachandra and Sons v. Customs Excise & Gold (Control) Appellate Tribunal & Anr. (2001) and M/s OVT India Private Limited v. Commissioner of Customs (2024), and observed that where no culpable negligence or lack of bona fides is shown, the term “sufficient cause” must be considered with a justice-oriented approach rather than a technical one.

Accordingly, the Bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta condoned the delay in filing the appeal, subject to payment of Rs. 50,000 as costs to the Department, and restored the appeal before the CESTAT for adjudication on merits.

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