2005 (7) TMI 691 - HC - Central Excise

Summary

Issues: Challenge to order of CESTAT based on time-barred appeal, consideration of appeal on merits, applicability of Supreme Court judgment on condonation of delay.

In this judgment by the Bombay High Court, the Petitioners challenged the order of CESTAT dated 7th October, 2003, which refused to entertain the Appeal on the basis that the Commissioner of Central Excise (Appeals) had dismissed it as time-barred. However, upon review of the Commissioner's order dated 30th September, 2002, it was noted that the Commissioner had also decided the matter on merits before observing that the appeal was time-barred. The Petitioners cited a Supreme Court judgment in Ganesh Santa Ram Sirur v. State Bank of India & Anr. 2005 Volume 1 SCC Page 13, where it was held that if a time-barred appeal is heard and decided on its merits, the delay is presumed to have been condoned.

The High Court found that CESTAT erred in rejecting the appeal solely on the grounds of being time-barred without considering the merits of the case. The Court held that CESTAT should have assessed the matter on its own merits rather than solely focusing on the time-bar issue. Consequently, the High Court quashed and set aside the CESTAT's order dated 7th October, 2003, along with the subsequent order, and remanded the matter back to CESTAT for a fresh hearing of the appeal No.E/263 of 2003 strictly on its merits in accordance with the law. The Court directed CESTAT to expedite the disposal of the appeal, emphasizing that it should be heard and decided promptly in light of the circumstances. The High Court ruled in favor of the Petitioners, making the rule absolute in this case.