2013 (6) TMI 613 - AT - Central Excise

Condonation of delay - The reason given is that the appellant being a Division of Indian Railways, they had to forward the papers to their Headquarters for review, clearance etc. and hence, the delay. The appellant also pleads that the appellant being a Govt. department, the matter be considered leniently in view - Held that - The Hon ble Supreme Court in the case of Chief Post Master General vs. Living Media India Ltd. - 2012 (4) TMI 341 - SUPREME COURT OF INDIA held that COD application by Govt. dept. cannot be done mechanically merely because the Govt. or its want was party before the Court and in absence of plausible and acceptable explanation, government cannot plead that there was no gross negligence or deliberate inaction or lack of bona fide , and liberal construction has to be adopted to advance substantial justice. The argument advanced for the delay is purely bureaucratic red-tape which is not satisfactory to this Bench. - application for condonation of delay dismissed.

Summary

Issues:
Condonation of delay application and stay application against Order-in-appeal dated 30.11.2011 passed by the Commissioner of Central Excise (Appeals), Pune-II.

Analysis:
The appellant received the impugned order on 11.01.2012 and filed the appeal on 12.12.2012, resulting in an eight-month delay from the normal three-month appeal filing period. The reason cited for the delay was the bureaucratic process within the appellant's organization, a Division of Indian Railways, requiring review and clearance from their Headquarters. The appellant sought leniency based on a decision of the Hon'ble Madras High Court and requested the delay to be condoned.

The legal principle governing the condonation of delay, as established by the Hon'ble Apex Court in N.Balakrishnan vs. M. Krishnamurthy 1998(7)SCC 123, emphasizes that the acceptability of the explanation for the delay is crucial, not just the length of the delay itself. The Court's discretion plays a significant role in such matters, and the grounds presented must satisfactorily demonstrate why the appeal could not be filed within the prescribed time limit.

Furthermore, the Hon'ble Supreme Court's ruling in Chief Post Master General vs. Living Media India Ltd. - 2012 (277) ELT 289(SC) clarified that Government departments cannot seek condonation of delay mechanically, especially without a plausible and acceptable explanation. The Court stressed the need for a liberal construction to advance substantial justice in such cases.

In this specific case, the Tribunal found the appellant's bureaucratic red-tape argument unsatisfactory, leading to the dismissal of the condonation of delay application, stay application, and the appeal itself. The Tribunal's decision was based on the lack of a convincing explanation for the delay, highlighting the importance of presenting valid grounds to justify seeking condonation in legal proceedings.