2018 (4) TMI 1397 - AT - Service Tax

Condonation of delay of 25 days in filing appeal - case of Revenue is that the revenue s authorization was given beyond four months and as such the Tribunal has no power to condone such delay - Held that - The delay being nominal and satisfactorily explained can be condoned - The Tribunal is vested with powers to condone any delay beyond the period mentioned in the said sub-section and such powers are given under sub-section (5) of Section 86 of the Act - there is no split up time limit regarding authorization for filing of appeal. Delay condoned.

Summary

Issues:
Delay in filing appeal, Condonation of delay, Interpretation of Section 86 of the Finance Act, 1994

Delay in filing appeal:
The Revenue filed a miscellaneous application seeking condonation of a 25-day delay in filing the appeal. The delay was attributed to administrative reasons related to the forwarding and receipt of files by the Committee to Review the Order of the Commissioner (Appeals). The Revenue requested the condonation of the delay to allow the main appeal to be considered on its merits.

Condonation of delay:
The respondent objected to the condonation, arguing that the Revenue's authorization was granted beyond the four-month limit, thereby contending that the Tribunal lacked the authority to condone such a delay. However, after hearing both parties and examining the appeal records, the Tribunal found the delay to be nominal and adequately explained, thus justifying its condonation.

Interpretation of Section 86 of the Finance Act, 1994:
The Tribunal analyzed Section 86 of the Finance Act, 1994, specifically sub-section (3), which outlines the time limit for filing appeals to the Appellate Tribunal. The Tribunal noted that while the section mandates a four-month filing period from the date the order is received by the relevant committee, it also empowers the Tribunal, under sub-section (5) of Section 86, to condone delays beyond this period. The Tribunal clarified that there is no specific time limit for the authorization to file an appeal and emphasized its discretion to condone delays when invoking Section 5. Ultimately, the Tribunal rejected the respondent's argument regarding the timing of authorization issuance and upheld its decision to condone the delay in filing the appeal.

This judgment from the Appellate Tribunal CESTAT CHENNAI involved a meticulous examination of the delay in filing an appeal, the principles of condonation of delay, and the interpretation of relevant provisions of the Finance Act, 1994. The Tribunal's decision to condone the delay was based on the nominal nature of the delay, the satisfactory explanation provided by the Revenue, and the Tribunal's authority to exercise discretion in such matters. The judgment underscores the Tribunal's role in ensuring access to justice while upholding procedural requirements within the framework of the law.