2012 (12) TMI 794 - AT - Service Tax

Condonation of Delay of 388 days - Held that - The delay has consciously occurred in the hands of the appellant. The huge gaps between two actions like sending the order to the Circle office, advise of the advocate, subsequent visit of the Accounts Officer and handing over of papers to the advocate, reflects upon very casual approach adopted by the appellant which cannot be considered to be reasonable. As such no reason to condone the huge delay of 388 days - stay petition and appeal dismissed as barred by limitation.

Summary

Issues:
Delay in filing the appeal before the Tribunal.

Analysis:
The appellant sought to condone a delay of 388 days in filing the appeal. The impugned order was received on 25.2.11, but the appeal was filed on 28.6.12. The appellant claimed they needed time to consider the impact administratively, financially, and legally. However, the action was taken for the first time on 10.8.11, beyond the normal three-month limitation period, even though the advocate's advice to file the appeal was given on 1.8.11. The delay was attributed to negligence on the part of the appellant, reflecting a casual attitude.

The Tribunal emphasized that "sufficient cause" for filing appeals within the limitation period should be construed liberally to advance substantial justice. However, this liberal construction should not apply when the delay results from deliberate acts, lack of bona fide, deliberate inaction, or negligence. In this case, the delay was not due to substantial reasons but rather negligence on the appellant's part. Condoning such delays would render the statutory limitation period meaningless. The Court must exercise judicial discretion to treat delays as excusable while upholding the purpose of limitation laws.

The reasons provided by the appellant, including significant gaps between actions taken, such as sending the order to the Circle office, advice from the advocate, and handing over papers, indicated a casual approach. The Tribunal concluded that the delay was not justifiable and rejected the application to condone the 388-day delay. Consequently, the stay petition and appeal were dismissed as time-barred.

In summary, the Tribunal refused to condone the delay in filing the appeal, emphasizing the importance of adhering to statutory limitation periods and rejecting the appellant's reasons as insufficient to justify the significant delay.