2014 (10) TMI 762 - HC - Central Excise

Condonation of delay - ground for seeking condonation of delay is that the appellant was not properly guided in the matter of preferring appeal and was also worried about the huge amount that he would be required to pay at the time of preferring the appeal - Held that - From the facts stated in the memorandum of application, it appears that the work carried out by the appellant is mainly in the nature of labour work, as such, the case put forth by the appellant that he were not aware of the intricacies of law, and therefore, could not approach the Tribunal in time appears to be quite plausible. It appears that the appellant was represented by a Chartered Accountant before the appellate authority and, therefore, relied upon him to give him proper guidance. However, since no proper guidance was given till the appellant contacted the learned advocate who represents him before the Tribunal, there was a delay in preferring the appeal. In the opinion of this court, the appellant had all the reason to hold a reasonable belief that he would be given proper guidance by the Chartered Accountant who had represented him before the appellate authority - Matter restored before Tribunal - Delay condoned.

Summary

Issues:
Delay in preferring the appeal before the Tribunal; Condonation of delay; Proper guidance by Chartered Accountant; Substantial question of law.

Analysis:
The appellant challenged an order by the Tribunal dismissing their appeal due to a delay of 221 days. The appellant argued that being engaged in labor work, they were not aware of legal intricacies and relied on a Chartered Accountant for guidance. The Tribunal rejected the appeal stating the appellant was represented by a Chartered Accountant before and dismissed the application for condonation of delay. The High Court noted the appellant's plausible explanation for the delay, emphasizing the lack of proper guidance by the Chartered Accountant. The court highlighted that the delay did not prejudice the respondent and adopted a pragmatic approach in favor of substantial justice. The court held the Tribunal erred in not condoning the delay, allowing the appeal, quashing the Tribunal's order, and restoring the appeal and stay application for consideration on merits.

This judgment primarily deals with the issue of condonation of delay in preferring an appeal before the Tribunal. The appellant's argument centered around their lack of legal knowledge due to being engaged in labor work and the failure of the Chartered Accountant to provide proper guidance. The High Court found the appellant's explanation plausible and emphasized the need for a pragmatic approach to further the cause of justice. The court criticized the Tribunal for not considering the appellant's explanation adequately and held that the delay should be condoned in the interest of substantial justice.

Another key issue addressed in the judgment is the reliance on professional advice, specifically the role of the Chartered Accountant in guiding the appellant. The appellant's argument that they were misled by the Chartered Accountant was accepted by the High Court, highlighting the importance of proper guidance in legal matters. The court noted that the appellant's reliance on the Chartered Accountant's advice led to the delay in filing the appeal, which warranted condonation considering the circumstances.

The judgment also raises the issue of substantial questions of law arising from the Tribunal's decision not to condone the delay. The High Court identified the substantial question of law regarding the Tribunal's justification for not condoning the delay caused in preferring the appeal. By analyzing the facts and circumstances of the case, the court concluded that the Tribunal's decision lacked proper application of mind and failed to consider the appellant's reasonable belief and lack of gross negligence in prosecuting the appeal.

Overall, the High Court's detailed analysis focused on the appellant's explanation for the delay, the role of the Chartered Accountant in providing guidance, and the need for a pragmatic approach in condoning delays to ensure substantial justice. The judgment emphasized the importance of considering all relevant factors and circumstances in deciding on condonation of delay in legal proceedings.