2009 (12) TMI 637 - AT - Central Excise

Restoration of the appeals - absence of the applicants on the day the appeals were heard - Held that - in the absence of sufficient cause being shown for the absence of the applicants/respondents on the day when the matter was heard and decided ex parte and further for delay in approaching the Tribunal for restoration of the appeals, no cause having been made out for grant of relief asked for. Hence the applications fail and are dismissed.

Summary

Issues: Restoration of appeals due to absence on the day of hearing and delay in approaching the Tribunal for restoration.

Restoration of Appeals:
The judgment revolves around the applications filed for restoration of appeals due to the absence of the applicants/respondents on the day the appeals were disposed of. The applicants claimed that the Manager of the firm, who was handling all Central Excise matters, failed to bring the appeal papers to their notice, resulting in their absence during the hearing. The learned advocate cited a Supreme Court decision and argued that the absence was genuine as the Manager had the papers but did not inform the applicants. However, the applications also revealed that the applicants were aware of the need to defend their case as they had prepared cross-objections. The Tribunal noted the delay in filing the applications, questioning why the applicants did not act promptly upon learning about the hearing date. The affidavit by the Managing Director indicated that the Manager had the appeal papers, including the cross-objections, well before the hearing date, suggesting that the applicants were aware of the proceedings. The termination of the Manager's services was mentioned, but the timeline of events, including when the applicants discovered the appeal papers with the Manager, remained unclear. The Tribunal emphasized the lack of bona fide on the part of the applicants due to insufficient evidence supporting their claim of ignorance about the hearing date.

Legal Precedent and Decision:
The judgment referred to the J.K. Synthetics Ltd. case, highlighting the Tribunal's obligation to assess whether there was a valid reason for the absence leading to an ex parte order. The Tribunal emphasized that unless sufficient cause is demonstrated for the absence on the hearing date and the delay in seeking restoration, the ex parte order should not be set aside. In this case, the Tribunal found no justifiable cause presented by the applicants for their absence during the hearing and the subsequent delay in approaching the Tribunal for restoration. Consequently, the applications for restoration of the appeals were deemed to lack merit and were dismissed.

This detailed analysis of the judgment showcases the Tribunal's scrutiny of the circumstances surrounding the absence of the applicants during the hearing and the subsequent delay in seeking restoration, emphasizing the need for valid reasons to set aside an ex parte order.