2018 (12) TMI 1182 - AT - Service Tax

Condonation of delay of one year in filing appeal - proper communication of order - Held that - The issue decided in the case of Saral Wire Craft Pvt. Ltd. Vs. Commr. of Cus. C.Ex. & Service Tax 2015 (7) TMI 894 - SUPREME COURT where it was held that miscarriage of justice has taken place in that the Authorities/Courts below have failed to notice the specific language of Section 37C(a) of the Act which requires that an Order must be tendered on the concerned person or his authorized agent in other words on no other person to ensure efficaciousness. Similar is the case on hand the identity of the receiver is not known nor is it clear whether the signatory is the authorized agent of the appellant or not. The appellant has made out a case the explanation for delay appears to be bona fide and not suspected by the first appellate authority as well and hence the same is accepted - the matter is remanded to the file of the first appellate authority - appeal allowed by way of remand.

Summary

Issues Involved:
Appeal against Order-in-Appeal No. 316/2018 - Time-barred appeal - Proper service of Order-in-Original - Validity of delivery run sheet - Challenge against equal penalty - Interpretation of relevant legal provisions and case laws.

Detailed Analysis:

1. Time-barred Appeal:
The appeal was filed against Order-in-Appeal No. 316/2018 dated 25.06.2018. The Commissioner dismissed the appeal as time-barred due to a delay of more than a year in filing it. The appellant argued that the Order-in-Original was dispatched by courier and received on 13.04.2017, but the appeal was filed on 29.05.2018. The appellant contended that the delivery was not proper as the consignee's name did not match the appellant's name, raising concerns about the service of the order. The appellant cited relevant judgments to support the argument that improper communication affects the validity of the service.

2. Challenge Against Equal Penalty:
The appellant challenged the equal penalty imposed and expressed willingness to appear before the first appellate authority for a decision on merits. This challenge raised the issue of whether the penalty was justified and whether the appellant should have the opportunity to present their case before the appellate authority.

3. Proper Service of Order-in-Original:
The Hon'ble Supreme Court's judgment in Saral Wire Craft Pvt. Ltd. case was cited, emphasizing the importance of proper service of decisions, orders, and summons. The Court highlighted that serving an order on an unauthorized person could lead to a miscarriage of justice. The appellant argued that the delivery run sheet did not clearly establish proper service, as the receiver's identity was unknown, and the signatory's status as the authorized agent was unclear. The judgment underscored the necessity of serving orders on the concerned party or their authorized agent for efficaciousness.

4. Operative Order:
After considering the rival contentions, the Member (Judicial) set aside the impugned Order and remanded the matter to the first appellate authority for a decision on merits without delving into the delay issue. The explanation for the delay in filing the appeal was deemed bona fide, and the appellant's case was accepted. The appeal was allowed for statistical purposes based on the terms mentioned in the judgment.

In conclusion, the judgment primarily focused on the proper service of the Order-in-Original, the time-barred nature of the appeal, the challenge against the penalty, and the applicability of relevant legal provisions and case laws. The decision highlighted the significance of ensuring due process and proper communication in legal proceedings, ultimately leading to the remand of the matter for a fresh decision on merits.