2000 (12) TMI 729 - AT - Central Excise

Summary

Issues:
1. Dismissal of appeal by Commissioner of Central Excise (Appeals) based on delay in filing.
2. Request for transfer of the matter to a different bench.
3. Proceedings initiated by the department regarding valuation.
4. Demand raised by show cause notice and subsequent recovery proceedings.
5. Application for condonation of delay and rejection by Commissioner.
6. Grounds for seeking condonation of delay.
7. Departmental view reiterated by the learned DR.
8. Consideration of submissions and decision by the Appellate Tribunal CEGAT, Chennai.

Analysis:
1. The appeal before the Appellate Tribunal arose from the dismissal of the appeal by the Commissioner of Central Excise (Appeals) due to a delay in filing. The appellants had initially filed the appeal before a different bench and requested its transfer to the South Zonal Bench in Chennai, which was granted by the Hon'ble President of the Tribunal.

2. The department had initiated proceedings regarding valuation, leading to an order in original passed by the Assistant Collector of Central Excise. Subsequent events included an appeal to the Collector (Appeals) and a demand confirmed by another order in original. The appellants believed that the demand did not survive due to a previous successful appeal, leading to the current appeal due to delay, which the Commissioner did not condone.

3. The learned Counsel argued that the delay should be condoned as the original assessment had been in their favor in a previous appeal. They contended that the demand and recovery proceedings were not sustainable, citing reasons for the delay and referencing a Supreme Court decision accepting a delay of 883 days in a similar case.

4. The learned DR reiterated the department's view, leading to the Appellate Tribunal's consideration of the submissions. The Tribunal found that the Collector had not accepted that the original order was non-est despite being struck down previously. They disagreed with this assessment, considering the reasons for the delay acceptable based on the non-sustainability of the demands raised and the previous successful appeal.

5. Consequently, the Appellate Tribunal set aside the impugned order and remanded the matter to the Commissioner (Appeals) for a decision on merits, considering the submissions made by the appellants regarding the original order being non-est. The Tribunal emphasized the need to accept the reasons given by the appellants for the delay, aligning with the Supreme Court decision cited and the non-sustainability of the demands.