2015 (4) TMI 604 - HC - Central Excise

Condonation of delay - Held that - Provision for pre-deposit under section 35F of the Central Excise Act came into force with effect from 6th August, 2014 whereas the original order sought to be challenged in this appeal is dated 22nd March, 2011 - we are inclined to allow the prayer for condonation of delay subject to deposit as per section 35F of the Central Excise Act within two weeks. In default of such deposit, the appeal shall stand dismissed. In the event such deposit is made, the Commissioner of Central Excise (Appeals)-III shall hear out the appeal on merits. - Delay condoned conditionally.

Summary

Issues: Appeal against recovery of duty, interest, and penalty under Central Excise Rules 1944 and Central Excise Act 1944, delay in filing appeal, condonation of delay, applicability of section 35F of the Central Excise Act.

Analysis:
The judgment pertains to an appeal against an order directing the recovery of duty, interest, and penalties under the Central Excise Rules 1944 and the Central Excise Act 1944. The original order dated 22nd March, 2011, issued by the Assistant Commissioner, confirmed the duty amount and imposed penalties under relevant rules. The appeal against this order was presented after the prescribed period of limitation, leading to the Commissioner of Central Excise (Appeals) refusing to condone the delay, thereby not considering the appeal on merits.

Subsequently, the order passed by the Commissioner of Central Excise was appealed before the Tribunal, which dismissed the appeal on 10th June, 2014. The challenge in the present case is against this order. The Court noted that the provision for pre-deposit under section 35F of the Central Excise Act came into force after the original order was issued in 2011. Considering the circumstances, the Court inclined to allow the prayer for condonation of delay, subject to the deposit as per section 35F of the Central Excise Act within two weeks. The judgment emphasized that in default of such deposit, the appeal would stand dismissed. However, if the deposit is made, the Commissioner of Central Excise (Appeals)-III would hear the appeal on merits.

The Court's decision to allow the condonation of delay while stressing the necessity of complying with the deposit requirement under section 35F of the Central Excise Act showcases a balance between procedural requirements and the opportunity for the appeal to be heard on its merits. The judgment ensures that the appeal process is fair and compliant with the statutory provisions, thereby upholding the principles of natural justice and due process in adjudicating matters related to duty, interest, and penalties under the Central Excise Rules and Act.