2010 (8) TMI 50 - AT - Central Excise

Limitation - Whether the Tribunal has no power to condone the delay in cases where the appeal is filed either beyond the period of one month from the date of communication of the decision of the Committee or when the committee takes decision under section 35E (1) or (2) beyond the period of 3 months? Held that power to condone delay on satisfaction about sufficient cause to be exercised also in cases filed under section 35E and would relate to whole of the period of delay from date of first communication. First communication would be date of receipt of copy of order by reviewing committee. Tribunal having ample power to condone delay in filing appeal including one filed under section 35E(4).

Issues Involved:
1. Tribunal's power to condone delay in filing appeals.
2. Validity of orders passed under Section 35E (1) and (2) beyond the prescribed period.
3. Applicability of Section 5 of the Limitation Act to Tribunal proceedings.

Issue-Wise Detailed Analysis:

1. Tribunal's Power to Condon the Delay in Filing Appeals:
The Tribunal examined whether it has the power to condone delays in cases where appeals are filed beyond the prescribed periods under Section 35E of the Central Excise Act. It was noted that Section 35B(5) of the Act provides the Tribunal with the authority to condone delays if sufficient cause is shown. The Tribunal emphasized that this power extends to appeals filed under Section 35E(4), which includes the period taken by the review committee to make a decision under Section 35E(1) or (2). The Tribunal concluded that it has ample power to condone delays in filing appeals, including those under Section 35E(4), provided sufficient cause is demonstrated.

2. Validity of Orders Passed Under Section 35E (1) and (2) Beyond the Prescribed Period:
The Tribunal discussed the administrative nature of orders under Section 35E(1) and (2), which involve forming an opinion on the legality or propriety of decisions by adjudicating authorities. It was highlighted that these orders do not adjudicate disputes but aim to avoid frivolous appeals. Despite the statutory mandate for the review committee to take decisions within three months, the Tribunal held that failure to meet this deadline does not render the Tribunal powerless to condone the delay. The Tribunal can condone delays in the review process under Section 35E(1) or (2) if sufficient cause is shown, ensuring that the entire period from the communication of the adjudicating authority's order to the filing of the appeal is considered.

3. Applicability of Section 5 of the Limitation Act to Tribunal Proceedings:
The Tribunal rejected the contention that Section 5 of the Limitation Act applies to its proceedings. It noted that the Central Excise Act is a complete code, providing specific provisions for filing appeals and condoning delays. The Tribunal referred to the Delhi High Court's decision in Delta Impex, which held that Section 5 of the Limitation Act does not apply when the statute prescribes specific periods and mechanisms for condoning delays. The Tribunal emphasized that Section 35B(5) of the Central Excise Act incorporates the principles of Section 5 of the Limitation Act, allowing for the condonation of delays upon showing sufficient cause.

Conclusion:
The Tribunal concluded that it has the power to condone delays in filing appeals under Section 35E(4) of the Central Excise Act, including the period taken by the review committee under Section 35E(1) or (2). The Tribunal's power to condone delays is not curtailed by the statutory time limits, provided sufficient cause is shown. The Tribunal also clarified that Section 5 of the Limitation Act does not apply to its proceedings, as the Central Excise Act already provides a comprehensive framework for addressing delays. The reference was answered accordingly, and the matter was directed to be placed before the concerned Bench for further proceedings.

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