2013 (7) TMI 310 - AT - Customs

Time limit of stay application - Commissioner denied condonation of delay - Held that - Appeal against order filed within prescribed time limit under Customs Act - There is no time limit prescribed for filing of stay application - stay application should not have been dismissed on the ground of delay in filing the stay application particularly in the circumstances when the appeal was filed in time - Matter remitted back - Decided in favour of assessee.

Summary

Issues:
- Stay application for waiver of pre-deposit of duty
- Dismissal of stay application by the learned Commissioner (Appeals)
- Dismissal of appeal for non-compliance with the Interim order-in-appeal
- Appeal filed under section 128 of the Customs Act, 1962
- Remand of the matter back to the learned Commissioner (Appeals)

Analysis:
The appellant filed a stay application seeking waiver of pre-deposit of duty amounting to Rs.13,45,842. The appellant contended that they timely filed an appeal against the Order-in-original but did not file the stay application simultaneously. The learned Commissioner (Appeals) dismissed the stay application due to its delay in filing, directing the appellant to deposit the duty amount failing which the appeal would be dismissed. Subsequently, the appeal was dismissed for non-compliance with an Interim order-in-appeal. However, the Tribunal found that the appeal was filed within the prescribed time limit under section 128 of the Customs Act, 1962, and there was no specific time limit for filing a stay application. Therefore, the dismissal of the stay application solely based on delay was deemed unjust. Consequently, the Tribunal remanded the matter back to the learned Commissioner (Appeals) to decide the stay application on its merits, allowing the appeal by way of remand.

This judgment highlights the importance of timely filing appeals under the Customs Act, 1962 and the discretion available regarding the filing of stay applications. The Tribunal emphasized that the dismissal of a stay application solely based on delay, when the appeal itself was filed within the prescribed time limit, is unwarranted. The decision underscores the need for a fair opportunity for parties to present their case, especially in matters concerning financial obligations like pre-deposit of duty. The Tribunal's ruling to remand the matter back for a fresh consideration of the stay application underscores the principles of natural justice and procedural fairness in adjudication processes under the Customs Act.