2019 (4) TMI 2148 - HC - Central Excise

Appeal dismissed on the ground of time limitation - rejection of refund claim - HELD THAT - The Tribunal relied on the decision of the Supreme Court in Singh Enterprises vs. CCE, Jamshedpur 2007 (12) TMI 11 - SUPREME COURT . In the said decision, Supreme Court examine the provisions of Section 35 of the Central Excise Act, 1944 and it was held that There cannot be any straitjacket formula for accepting or rejecting the explanation furnished for delay caused in taking steps. In the instant case, the explanation offered for the abnormal delay of nearly 20 months is that the appellant concern was practically closed after 1998 and it was only opened for some short period. From the application for condonation of delay, it appears that the appellant has categorically accepted that on receipt of order the same was immediately handed over to the consultant for filing an appeal. If that is so, the plea that because of lack of experience in business there was delay does not stand to be reason. Thus, no case is made out to warrant interference in exercising of our powers confer under Article 226 of the Constitution of India - petition dismissed.

Summary

Issues:
1. Challenge against the order of Customs, Excise & Service Tax Appellate Tribunal on the ground of limitation.
2. Rejection of claims for refund by Assistant Commissioner, C.G.S.T. & Central Excise Division.
3. Appeal against the order of rejection and subsequent dismissal by the Tribunal.
4. Interpretation of provisions of Section 35 of the Central Excise Act, 1944 regarding condonation of delay.
5. Consideration of 'sufficient cause' for condonation of delay.
6. Application of legal principles in condonation of delay cases.
7. Dismissal of the writ petition under Article 226 of the Constitution of India.

Analysis:
1. The petitioner challenged the order of the Customs, Excise & Service Tax Appellate Tribunal, which dismissed an appeal due to limitation. The Tribunal found no error in the Commissioner's dismissal of the appeal based on the time limit. Reference was made to the Supreme Court's decision in Singh Enterprises vs. CCE, Jamshedpur, emphasizing the statutory time limits for filing appeals under Section 35 of the Central Excise Act, 1944.

2. The Assistant Commissioner rejected the petitioner's claims for refund amounting to Rs.3,83,67,782 for a specific period. This rejection led to the initial writ petition, which was later withdrawn with liberty to pursue alternative remedies.

3. Subsequently, an appeal was filed against the rejection order, which was decided on 13.4.2018. The appeal was further challenged before the Tribunal, resulting in dismissal based on the limitation period. The Tribunal's decision was upheld, and the appeal was ultimately dismissed.

4. The judgment highlighted the statutory provisions of Section 35 of the Central Excise Act, 1944, which govern the time limits for filing appeals. It clarified that the appellate authority could only condone delays up to 30 days beyond the initial 60-day period for filing appeals, excluding the application of Section 5 of the Limitation Act.

5. The concept of 'sufficient cause' for condonation of delay was discussed, emphasizing that there is no fixed formula for accepting or rejecting explanations for delays. The judgment underscored that the reasons provided for condonation must be valid and substantial, as demonstrated in the case at hand where the delay was not satisfactorily justified.

6. Legal principles regarding the condonation of delay cases were examined, citing precedents to illustrate the importance of adhering to statutory time limits for filing appeals. The judgment emphasized that even in exceptional cases, the courts must uphold the prescribed limitation periods to prevent rendering statutory provisions redundant.

7. Finally, after considering the arguments presented, the court concluded that there was no justification for interference under Article 226 of the Constitution of India. The writ petition was deemed devoid of merit and substance, leading to its dismissal.