2020 (7) TMI 86 - AT - Central Excise

Condonation of delay in filing appeal - sufficient cause for delay present or not - HELD THAT - The order in appeal as has been proposed to be challenged was earlier accepted by the Committee of Commissioners and the Commissioner Jaipur gave the acceptance on 19 December, 2018. The extract of office note-sheet annexed with the time chart reveals that the order in appeal was directed to be reviewed on 15 May, 2019 without stating any reason for proceeding against the acceptance, which was made five months prior to the directions of the review. The limitation statute when specifically provides a time period for filing the appeals, the purpose requires adherence of time line for the same. Irrespective of the fact that Tribunal is empowered to condone the delay in filing the appeal but the sufficient cause has to be shown by the appellant seeking condonation of delay - the reason quoted is not sufficient rather reflects negligence on the part of the Department by first accepting the order proposed to be challenged and subsequently directing the review thereof for no reason. Also the reason quoted today is absolutely contrary to the reason mentioned in the application seeking condonation. None of these classify the criteria of being called as sufficient cause of Section 5 of Limitation Act. COD application dismissed.

Summary

Issues: Condonation of delay in filing appeal, sufficiency of cause for delay

In this judgment by the Appellate Tribunal CESTAT New Delhi, the issue revolved around the condonation of delay in filing an appeal. The Department sought condonation of delay of more than 130 days in challenging an order due to a wrong presumption causing delay in pronouncement. The Tribunal noted that the order in appeal had been accepted by the Committee of Commissioners months before it was directed to be reviewed, without any stated reason for the review. The reviewing authority failed to provide a valid reason for recalling the acceptance. The Department initially cited Lok Sabha Elections as a reason for delay, which was deemed insufficient. Despite providing a new explanation, the Tribunal found it unreasonable and unjustified. The Tribunal emphasized the importance of adhering to time limits for filing appeals, even though it has the power to condone delays. It concluded that the reasons presented did not meet the criteria of a "sufficient cause" under Section 5 of the Limitation Act. Consequently, the application for condonation of delay was dismissed, leading to the dismissal of the appeal as well. The judgment highlights the necessity for appellants to demonstrate valid and sufficient reasons for seeking condonation of delay in legal proceedings to ensure adherence to statutory timelines.