2002 (3) TMI 160 - AT - Central Excise

Summary

Issues: Delay in filing appeal, Condonation of delay, Stay application for waiver of pre-deposit and stay of recovery

In the judgment delivered by the Appellate Tribunal CEGAT, New Delhi, the issue of delay in filing an appeal and the subsequent application for condonation of delay were considered. The appellant, a partner of a firm, had filed a separate appeal after a delay of over one year, citing a belief that challenging the penalty imposed on him in the firm's appeal was sufficient. However, it was revealed that the challenge against the personal penalty was not entertained as the partner was not a co-appellant in the firm's appeal. The Tribunal, after examining the submissions and record, found that the partner filed a separate appeal within three months of realizing the necessity, excluding the period spent pursuing the wrong remedy. The delay was condoned in the interest of justice, and the condonation application was allowed.

Regarding the stay application for waiver of pre-deposit and stay of recovery in relation to the penalty imposed under Rule 209A of the Central Excise Rules, 1944, the Tribunal noted that the applicant was solely responsible for the firm's affairs. While the firm's appeal sustained a penalty under Rule 226, which also covered confiscation, the penalty on the partner under Rule 209A did not involve confiscation of excisable goods. No allegations or findings of confiscation were made, leading the Tribunal to find a strong prima facie case in favor of the applicant. Consequently, a complete waiver of pre-deposit and stay of recovery for the penalty amount was granted, and the appeal was scheduled for a hearing on a specified date.