Condonation of delay in service tax appeals was allowed where a short filing delay should not bar merits review.

A short delay in filing service tax appeals before the Commissioner (Appeals) should not be rejected on a rigid limitation approach where the appellant had taken steps to file the appeals and sought condonation within the period that could be condoned. The refusal to condone a 28-day delay was found too strict, because the matters ought to have been examined on merits rather than dismissed on limitation alone. The limitation dismissal was set aside and the appeals were remanded for disposal on merits.

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Issues: Whether the delay in filing the appeals before the Commissioner (Appeals) ought to have been condoned and the matters heard on merits.

Analysis: The appeals were filed within the framework of the service tax appellate remedy and the delay was only 28 days. The record showed that the appellant had in fact taken steps to file the appeals and had sought condonation within the period that could be condoned by the Commissioner (Appeals). In the circumstances, the refusal to condone delay was considered too rigid, particularly when the appeals ought to have been examined on merits instead of being rejected on limitation alone.

Conclusion: The delay should have been condoned. The dismissal on limitation was set aside and the appeals were remanded for disposal on merits in favour of the assessee.

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