2006 (10) TMI 336 - AT - Central Excise

Summary

Issues involved: Condonation of delay in filing an appeal before CESTAT u/s Section 35B(2) of the Central Excise Act.

Condonation of Delay Issue:
The Appellate Tribunal considered an application for condonation of delay filed by the revenue for a delay of around 106 days in filing an appeal against an order-in-appeal dated 28-10-2005. The delay was attributed to administrative reasons, specifically the process involving the Chief Commissioner's office. The respondent argued that the revenue's explanation for the delay was not clear. Upon reviewing the records, it was found that the order-in-appeal was received by the Commissionerate on 13-12-05, reviewed by lower authorities, and accepted by the Commissioner of Central Excise, Ludhiana on 26-12-05. The file was then forwarded for concurrence to the Commissioner of Central Excise, Jalandhar, who accepted it on 4-1-06. However, the Chief Commissioner's office directed a re-examination of the case for filing an appeal before CESTAT, which was deemed beyond their authority as per Section 35B(2) of the Central Excise Act.

Legal Interpretation Issue:
The Tribunal referred to the provisions of Section 35B(2) of the Central Excise Act, which authorize the Committee of Commissioners of Central Excise to review and appeal against orders passed by the Commissioner (Appeals) if found to be illegal or improper. In this case, the Committee had accepted the order passed by the Commissioner (Appeals), Ludhiana, indicating no grounds for filing an appeal. Citing a previous decision, the Tribunal emphasized that administrative delays without reasonable explanations are insufficient to condone delays in filing appeals. The Tribunal concluded that the revenue's appeal was not justified as the order of the Commissioner (Appeals) was not found to be improper or illegal, leading to the dismissal of the application for condonation of delay and subsequently the appeal filed by the revenue.