2008 (2) TMI 685 - AT - Central Excise

Summary

Issues:
1. Duty demand against the assessee for Cenvat credit on inputs used in the manufacturing process.
2. Imposition of penalty for availing wrong Cenvat credit.
3. Dismissal of appeal by Commissioner (Appeals) due to a delay in filing the appeal.
4. Application for waiver and appeal before the Tribunal.

Analysis:

1. The Assistant Commissioner of Central Excise confirmed a duty demand of Rs. 38,43,070 against the assessee for not being entitled to Cenvat credit on inputs used in the process of cutting, slitting, pickling, and oiling of jumbo coils of hot rolled non-alloy sheets. The reason cited was that the process did not amount to manufacture. Additionally, a penalty of an equal amount was imposed for the incorrect availing of Cenvat credit.

2. The Commissioner (Appeals) upheld the order and dismissed the appeal filed by the assessee, citing a delay of 29 days in filing the appeal as the reason. The dismissal was based on the lack of a formal application for condonation of delay and the absence of any explanation from the assessee during the personal hearing regarding the delay. The Commissioner found no valid reason for the delay within the statutory limitation period.

3. The Tribunal noted that the Commissioner (Appeals) rightfully dismissed the appeal as time-barred due to the unexplained delay. The Tribunal agreed that the appeal was rightly dismissed, as there was no satisfactory explanation provided for the delay in filing the appeal. Consequently, the Tribunal waived the requirement of pre-deposit and proceeded to dismiss the appeal itself based on the grounds established by the Commissioner (Appeals).

4. The Tribunal's decision to dismiss the appeal was primarily based on the failure of the assessee to provide a valid reason for the delay in filing the appeal before the Commissioner (Appeals). The Tribunal's ruling aligned with the Commissioner's decision, emphasizing the importance of adhering to statutory timelines and the necessity of providing justifiable reasons for any delays in legal proceedings.