Condonation of delay allowed where medical cause and bona fide conduct showed sufficient cause for hearing on merits.

A 40-day delay in filing an appeal before the Commissioner (Appeals) was held condonable where the assessee had already paid the duty and part of the penalty, and the delay was explained by a medical certificate of the director managing day-to-day affairs. The certificate was not disputed, and the surrounding circumstances indicated no deliberate delay. A technical approach was considered unwarranted when sufficient cause was shown and a hearing on merits was sought. The delay was therefore condoned, the appellate order was set aside, and the matter was remitted for decision on merits.

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Issues: Whether the delay of 40 days in filing the appeal before the Commissioner (Appeals) should be condoned and the matter heard on merits.

Analysis: The appeal was delayed by 40 days, but the assessee had already deposited the entire duty and 25% of the penalty. The explanation for delay was supported by a medical certificate of the Director, who was in charge of the day-to-day affairs of the company. The certificate was not doubted, and the circumstances showed no motive for deliberate delay. A technical approach was held to be unwarranted where the assessee sought a hearing on merits and sufficient cause was made out for condonation.

Conclusion: The delay was condoned, the order of the Commissioner (Appeals) was set aside, and the appeal was remitted for decision on merits.

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