2003 (6) TMI 372 - AT - Central Excise

Summary

Issues:
1. Delay in filing appeal before the Commissioner (Appeals) and condonation of the same.

Analysis:
The case involved a situation where the appellants faced proceedings for clandestinely removing excisable goods without payment of duty. The adjudicating authority confirmed duty demand, penalties under Section 11AC and Rule 173Q, and imposed penalties on specific individuals related to the company. The Commissioner (Appeals) dismissed the appeals as time-barred due to a delay of 40 days in filing the appeal, which the appellants sought to condone based on a medical certificate of the company's Director. The Tribunal examined the circumstances and reasons for the delay.

The Tribunal found that the appellants had deposited the entire duty amount and a portion of the penalty imposed under Section 11AC, indicating no intention to avoid filing the appeal in a timely manner. Despite the Commissioner (Appeals) rejecting the medical certificate as a sufficient cause for the delay, the Tribunal disagreed. It emphasized that the Director's illness, as per the medical certificate, was a valid reason for the delay, especially considering his role in the company's daily operations. The Tribunal held that the Commissioner (Appeals) should have condoned the delay, as the Director's illness was a genuine reason and the company had already fulfilled its financial obligations.

Consequently, the Tribunal set aside the Commissioner (Appeals)'s order, condoned the 40-day delay in filing the appeal, and directed the Commissioner (Appeals) to hear the appellants' appeal on its merits. The Tribunal emphasized that a pragmatic approach should be taken, ensuring the appellants' right to be heard on the case's substance was not denied due to technicalities. The decision aimed to provide a fair opportunity for the appellants to present their case and have their appeal considered on its merits, given the circumstances surrounding the delay and the actions taken by the company.