2014 (8) TMI 663 - AT - Service Tax

Condonation of delay - Waiver of pre deposit - Bar of limitation - Head injury of Accounts Manager - Held that - Probably no investigation has also been conducted as to whether this Accounts Manager was seriously ill or not. In such a situation, the affidavit filed and the medical certificate have to be accepted. No doubt, the Accounts Manager should have and could have handed over the paper before 25th and even when he was in bed rest, he could have handed over it to the company. But, he apparently did not do so. No doubt, it would appear that no sufficient care was taken by the Accounts Manager of the company and as pointed out the company also did not take care This is a case where the delay has occurred because of accident resulting in head injury. Certain amount of humanitarian and sympathetic approach is called for. Minor omissions/commissions mentioning the facts cannot be taken as ground for denying the justice. Under these circumstances, in the interest of justice and humanitarian ground and taking into consideration that the Accounts Manager met with an accident and suffered head injury, the delay is condoned - appellant has deposited entire amount of duty demanded with interest and treating the same as sufficient, the requirement of pre-deposit of balance dues is waived and stay against the recovery of the same is granted during the pendency of the appeal - Stay granted.

Summary

Issues: Condonation of Delay in Filing Appeal, Negligence on the Part of the Company and Accounts Manager, Compliance with Clean Hands Principle, Humanitarian Grounds for Condonation, Waiver of Pre-deposit Requirement

Condonation of Delay in Filing Appeal:
The appellant sought condonation of an 86-day delay in filing the appeal, attributing it to the Accounts Manager's accident and subsequent bed rest. The Revenue argued negligence on the part of the company and the Accounts Manager, emphasizing discrepancies in the explanation provided. The judge acknowledged deficiencies in the condonation application but accepted the medical certificate as proof of the Accounts Manager's illness. Despite noting the lack of care taken by both the Accounts Manager and the company, the judge, considering the accident and head injury, condoned the delay.

Negligence on the Part of the Company and Accounts Manager:
The Revenue contended that the company and the Accounts Manager were negligent in handling the situation. They questioned why the Accounts Manager did not hand over the order promptly and criticized the company for not ensuring important matters were addressed during the Accounts Manager's absence. The judge agreed that there was a lack of care on both sides but ultimately considered the accident and injury suffered by the Accounts Manager in condoning the delay.

Compliance with Clean Hands Principle:
The Revenue cited previous Tribunal decisions emphasizing the importance of seeking condonation of delay with clean hands. They pointed out contradictions in the appellant's statements regarding the date of order receipt. The judge acknowledged the deficiencies in the application but chose to accept the medical certificate as evidence of the Accounts Manager's condition, despite the lack of investigation into the seriousness of the illness.

Humanitarian Grounds for Condonation:
The judge highlighted the humanitarian aspect of the case due to the accident and head injury suffered by the Accounts Manager. While acknowledging the minor omissions and commissions in the case, the judge emphasized the need for a sympathetic approach and the interest of justice in condoning the delay. The decision to condone the delay was influenced by the circumstances surrounding the accident.

Waiver of Pre-deposit Requirement:
Additionally, the judge noted that the appellant had deposited the entire amount of duty demanded with interest. Considering this as sufficient, the judge waived the pre-deposit requirement for the balance dues and granted a stay against the recovery of the same during the appeal's pendency.