2017 (12) TMI 968 - HC - Service Tax

Condonation of delay of 56 days in filing appeal - the order under challenge was served at its factory premises whereas the administrative office was situated elsewhere which consumed sometime in preferring the appeal - Held that - delay in preferring the appeal was not unduly long. The explanation of the assessee was neither untenable nor baseless. It is not the case that the Tribunal lacked power to condone delay - Delay in filing appeal before the Tribunal is condoned - COD application allowed.

Summary

Issues:
Delay in filing tax appeal before the Tribunal, Condonation of delay, Judicial trend on condonation of delay, Power of the Tribunal to condone delay.

Analysis:

1. Delay in filing tax appeal before the Tribunal:
The appellant had filed a tax appeal challenging the judgment of the Customs, Excise and Service Tax Appellate Tribunal, which was delayed by 56 days. The delay was attributed to the fact that the order under challenge was received at the appellant's factory located at one place while the administrative office was situated elsewhere. The Tribunal had refused to condone the delay, leading to the appeal being dismissed.

2. Condonation of delay:
The appellant had sought condonation of the delay in filing the appeal, providing a reasonable explanation for the delay. The appellant argued that the delay was minimal, and the explanation given was neither untenable nor baseless. The Tribunal, however, was not convinced by the grounds presented and refused to condone the delay, citing negligence on the part of the appellant.

3. Judicial trend on condonation of delay:
The High Court noted the judicial trend favoring the granting of substantial justice in matters of delay. The Court emphasized that courts generally lean towards condoning delays to ensure justice is served. Despite this trend, the Tribunal had declined to condone the delay in this case, prompting the High Court to intervene and set aside the Tribunal's judgment.

4. Power of the Tribunal to condone delay:
The High Court observed that the Tribunal possessed the power to condone the delay in filing the appeal. The Court expressed regret over the Tribunal's decision to dismiss the appeal instead of exercising its discretion to condone the delay. Consequently, the High Court set aside the Tribunal's judgment, condoned the delay, and directed the Tribunal to consider the appeal on its merits.

In conclusion, the High Court's judgment overturned the decision of the Tribunal, emphasizing the importance of condoning delays in the interest of justice and directing the Tribunal to reconsider the appeal based on its merits.