2015 (12) TMI 1831 - HC - Central Excise

Condonation of delay of 60 days in filing of appeal - appellant received the notice for hearing of condonation application, but on 28-10-2013, he did not appear and the appeal was dismissed in default - appellant applied for restoration of appeal on the ground that notice was received by his untrained staff, who did not inform him about the date of hearing on 28-10-2013 - HELD THAT - The Court should endeavour to decide the appeal on merit, instead of dismissing it on technical ground and for any pardonable lapse on the part of party, cost can be imposed. We, therefore, having regard to the facts and circumstances of the case, set aside the impugned order and direct the Tribunal to restore the appeal on a cost of ₹ 5000/-. The appellant shall now appear before the Tribunal on 21-12-2015 - Appeal allowed.

Summary

Issues:
Appeal against dismissal of Service Tax Appeal for restoration on the ground of administrative inefficiency.

Analysis:
The appellant had filed a Service Tax Appeal along with an application for condonation of delay of 60 days. However, due to the appellant's untrained staff failing to inform him about the hearing date, the appeal was dismissed in default on 28-10-2013. The Tribunal dismissed the application for restoration, stating that administrative inefficiency cannot be a ground for recalling the order. The appellant argued that the appeal should have been decided on merits and that they have a strong case.

The High Court, considering the circumstances, emphasized that appeals should be decided on merit rather than technical grounds. They set aside the Tribunal's order and directed the restoration of the appeal, imposing a cost of &8377; 5000. The appellant was instructed to appear before the Tribunal on 21-12-2015. The High Court allowed the appeal, emphasizing the importance of deciding cases on their merits and imposing costs for any pardonable lapses by parties.