2018 (8) TMI 823 - HC - Service Tax

Condonation of delay of 307 days in filing appeal - delay on the ground that the concerned Accountant who was looking after the accounts of the firm had resigned from the assessee-Company in August 2014 - Held that - The learned Tribunal has erred in rejecting the appeal on the preliminary ground of delay. The delay, even though of 307 days, had been reasonably explained by the assessee and the learned Tribunal ought to have decided the appeal on merits - appeal restored back on the file of the said Tribunal, with a request to decide the same on merits after giving opportunities to both the parties - COD allowed.

Summary

Issues: Appeal against dismissal of appeal by Tribunal due to delay of 307 days.

In this case, the primary issue was the dismissal of the appeal by the Customs, Excise & Service Tax Appellate Tribunal due to a delay of 307 days in filing the appeal. The appellant argued that the delay was due to the resignation of the accountant responsible for the firm's accounts, which led to a lack of awareness about the tax notice. The Tribunal refused to condone the delay and dismissed the appeal solely on the grounds of delay.

The High Court analyzed the submissions made by the appellant and noted that the delay of 307 days was adequately explained by the circumstances surrounding the resignation of the accountant. The Court observed that no contradicting evidence was presented to challenge the explanations provided by the assessee for the delay. The Court held that the Tribunal erred in rejecting the appeal based solely on the preliminary ground of delay and emphasized that the appeal should have been decided on its merits rather than being dismissed on procedural grounds.

Furthermore, the High Court highlighted the importance of fact-finding authorities like Tribunals and Appellate Authorities focusing on the merits of the case and providing reasoned decisions. The Court emphasized that dismissing appeals on grounds such as delay without considering the merits does not serve the interests of justice for either party. The Court stated that unless the delay is significant and unexplained, Tribunals should exercise discretion cautiously when dismissing appeals on procedural grounds.

Ultimately, the High Court set aside the order of the Tribunal and allowed the appeal of the assessee. The Court directed the Customs, Excise & Service Tax Appellate Tribunal to reconsider the appeal on its merits, providing both parties with an opportunity to present their case. The judgment emphasized the importance of deciding cases based on substantive issues rather than procedural technicalities, ensuring a fair and just resolution for all parties involved.