2019 (10) TMI 1420 - AT - Service Tax

Condonation of delay in filing appeal - appeal was filed after the expiry of four months from the date of receipt of the order by the Committee of Chief Commissioners - section 86 of Finance Act - HELD THAT - The delay in filing the appeal is of 465 days as it is not in dispute that the Committee of Chief Commissioners received the impugned order dated 31 January 2018 on 13 February 2018 and the appeal was actually filed before the Tribunal on 18 September 2019 - Section 86 of the Act deals with appeals to the Appellate Tribunal. Sub-section (1) of Section 86 provides that an assessee aggrieved by an order passed by the Principal Commissioner or Commissioner, may appeal to the Appellate Tribunal within three months of the date of the receipt of the order. It is true that sub-section (5) of Section 86 does provide that the Appellate Tribunal may admit an appeal or permit the filing of the appeal of memorandum of cross-objection after the expiry of the relevant period if it is satisfied there was sufficient cause for not presenting the appeal within that period, but as noticed above, the facts stated in the application filed for condoning the delay do not mention anything that may satisfy the Tribunal that there was sufficient cause for not presenting the appeal within the stipulated period of four months - It is not the case of the Department that the communication dated 7 June 2018 sent by the Registry of the Tribunal was not received by the Appellant. Infact in the application filed for condoning the delay, it has been stated that the assessee had filed an appeal and the present appeal may be connected with the appeal filed by the assessee. The Department could have filed cross-objections also within the time stipulated but that was not done. There is no good reason to condone the delay - Application rejected - appeal dismissed.

Summary

Issues Involved:
1. Timeliness of the appeal filed by the Commissioner of Central Goods and Service Tax.
2. Justification for the delay in filing the appeal.
3. Applicability of Section 86 of the Finance Act, 1994.
4. Consideration of "sufficient cause" for condoning the delay.
5. The Department's failure to file cross-objections within the stipulated period.

Issue-wise Detailed Analysis:

1. Timeliness of the Appeal:
The appeal was filed by the Commissioner of Central Goods and Service Tax, Delhi East, on 18 September 2019 to challenge the order dated 31 January 2018. The Committee of Chief Commissioners received this order on 13 February 2018. According to Section 86(3) of the Finance Act, 1994, the appeal should have been filed within four months from the date of receipt of the order by the Committee of Chief Commissioners, making the deadline 13 June 2018. However, the appeal was filed after a delay of 465 days.

2. Justification for the Delay:
The application for condoning the delay stated that the delay was due to the reorganization of the jurisdiction of the assessee under the new GST formations, which led to the concerned file getting mixed up. The delay was claimed to be unintentional, and the appeal was filed promptly after the Committee of Chief Commissioners issued the Review Directions on 13 September 2019.

3. Applicability of Section 86 of the Finance Act, 1994:
Section 86 of the Act outlines the procedure for appeals to the Tribunal. Sub-section (1) allows an assessee to appeal within three months of receiving the order. Sub-section (2) permits the Committee of Chief Commissioners to direct the Commissioner to appeal if they object to an order. Sub-section (3) mandates that such an appeal must be filed within four months from the date the Committee receives the order.

4. Consideration of "Sufficient Cause" for Condoning the Delay:
The Tribunal found the explanation for the delay to be vague and unsatisfactory. It noted that the Goods and Service Tax was introduced on 1 July 2017, and the impugned order was passed on 31 January 2018, well after the GST implementation. The file was available when the order was passed and when the Committee received it on 13 February 2018. The Tribunal emphasized that the Committee should have taken a decision within four months to enable timely filing of the appeal. The application did not provide specific reasons for the prolonged delay of one year and seven months in deciding to file the appeal.

5. The Department's Failure to File Cross-Objections:
The Tribunal noted that the assessee had filed an appeal on 18 May 2018, and the Tribunal's Registry informed the Department on 7 June 2018. The Department could have filed cross-objections within the stipulated period but failed to do so. The Tribunal highlighted that the Department did not provide any reason for not filing cross-objections within the time frame.

Conclusion:
The Tribunal concluded that there was no "sufficient cause" for the delay in filing the appeal. The reasons provided were deemed inadequate and unconvincing. The Tribunal rejected the application for condoning the delay and dismissed the appeal. The decision emphasized the importance of adhering to statutory timelines and providing specific, credible reasons for any delays in legal proceedings.