2016 (4) TMI 1197 - AT - Customs

Condonation of delay - application for fixation of brand rate - appellant has filed this application beyond the period of three months but before the expiry of 12 months from the date of Let Export Order made in the shipping bills - Held that - granting of drawback or industrial brand rate which is a beneficial legislation needs to be considered in a broader perspective rather than a narrow view - The statute mandates that an application can be filed for condoning the delay beyond the period of three months but within 12 months from the date of Let Export Order needs to be read in the correct perspective in line with beneficial legislation and delay if any needs to be condoned. Matter remanded back to the Commissioner with direction to condone the delay by taking a liberal approach - appeal allowed by way of remand.

Summary

Issues: Condonation of delay in filing appeal for fixation of brand rate under Customs and Central Excise Duties Drawback Rules, 1995.

Analysis:
1. Delay Condonation Application: The application before the Appellate Tribunal was for condonation of delay in filing the appeal. The Tribunal, after considering submissions from both sides, decided to condone the delay and proceed with the appeal due to the narrow compass of the issue.

2. Merits of the Case: Upon hearing both sides and perusing the records, it was revealed that the appeal was against an order by the Commissioner denying the condonation of delay in fixing the brand rate. The appellant had filed the application beyond the three-month period but within 12 months from the Let Export Order date. The Commissioner rejected the request citing lack of convincing reasons. Notably, the first appellate authority had previously condoned the delay, which was overruled by the Joint Commissioner.

3. Interpretation of Beneficial Legislation: The Tribunal emphasized that the grant of drawback or industrial brand rate, being a beneficial legislation, should be viewed broadly rather than narrowly. Referring to a previous case, the Tribunal highlighted that applications for condoning delays within 12 months from the Let Export Order date should be approached liberally. The Tribunal set aside the Commissioner's order and directed a reevaluation with a more lenient perspective in line with the Drawback Rules.

4. Final Disposition: The Tribunal concluded by disposing of the appeal as per the directions provided, emphasizing the need for a liberal approach in considering delay condonation applications for brand rate fixation under the relevant legislation.

This comprehensive analysis of the judgment highlights the key issues involved, the Tribunal's interpretation of the law, and the final disposition of the appeal, providing a detailed overview of the legal proceedings and outcomes.