2012 (10) TMI 457 - HC - Central Excise

Delay of 726 days in filing appeal - Held that - The plea for condoning the delay is that the appellant is a sick company and the appellant-Company was lying closed when the impugned order was received. Only one male Director was looking after the affairs of the company who due to heavy losses and involvement in various cases, could not file the appeal within time. The company is likely to revive now. On these premises, condonation of delay has been prayed. The narration of cause for claiming condonation of delay in filing the appeal would not fall within the expression sufficient cause so as to entitle the assessee for condonation of inordinate delay of 726 days in filing the appeal - against assessee.

Summary

Issues: Application for condonation of delay under Section 35G of the Central Excise Act for 726 days' delay in filing the appeal.

Analysis:
1. The application under Section 35G of the Central Excise Act sought condonation of a 726-day delay in filing the appeal. The appellant, engaged in the manufacture and export of Nylon, Polyester/Blended Yarn, imported goods without duty payment. The Assistant Commissioner granted permission for processing the yarn, but the appellant cleared a portion in the domestic market. The adjudicating authority issued a show cause notice demanding duty, eventually confirmed and imposed penalties. The appeal before the Commissioner (Appeals) was dismissed, leading to an appeal before the Customs, Excise and Service Tax Appellate Tribunal (the Tribunal). The Tribunal directed a deposit, and non-compliance resulted in appeal dismissal, leading to the current application for condonation of delay.

2. The legal position regarding condonation of delay under Section 5 of the Limitation Act, 1963 was examined. Citing the Supreme Court's principles from Oriental Aroma Chemical Industries Ltd. v. Gujarat Industrial Development Corporation, the court emphasized the importance of timely legal remedies while allowing for condonation if sufficient cause is shown. The appellant argued for condonation due to being a sick company with a sole director facing losses and legal issues, resulting in the delay. However, the court noted the significant 726-day delay and concluded that the reasons presented did not constitute "sufficient cause" for condonation.

3. The court highlighted the need for a factual analysis of each case to determine sufficient cause for condonation. Despite the appellant's arguments, the court found that the reasons provided did not meet the threshold for condoning such a substantial delay. Consequently, the application for condonation of delay was dismissed, leading to the dismissal of the appeal as time-barred.