High Court grants delay condonation, directs Tribunal to proceed with appeal, imposes cost

The High Court allowed the petition by a Cooperative Society of Land Loosers Farmers, quashing the Tribunal's rejection of their delay condonation application and instructing the Tribunal to proceed with the appeal. The Court imposed a cost of Rs. 20,000, which had already been deposited by the petitioner. The Tribunal was directed to decide the appeal without raising the limitation issue but in compliance with statutory provisions. The deposited amount was to be returned to the respondent, the Commissioner of Central Excise and Service Tax, Vadodara II.

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Issues: Delay condonation application for filing an appeal, rejection of delay condonation application by the learned Tribunal, justification for filing the appeal belatedly, imposition of cost, quashing and setting aside the impugned order, direction to decide the appeal without raising limitation issue, payment of deposited amount to the respondent.

Analysis:
1. The petitioners, a Cooperative Society of Land Loosers Farmers, challenged an order of the Custom Excise and Service Tax Tribunal rejecting their application to condone a delay of approximately 475 days in filing an appeal against the order of the Commissioner (Appeals).

2. The learned Tribunal rejected the delay condonation application, stating that the original appellant did not provide sufficient justifiable reasons for the delay. However, considering the nature of the petitioner Society as a Society of Land Loosers Farmers and the absence of any malicious intent in the delay, the High Court decided to condone the delay and instructed the Tribunal to proceed with the appeal.

3. The petitioner had deposited a sum of Rs. 20,000 with the Court following an earlier order. Due to the peculiar circumstances of the case, the High Court set aside the Tribunal's order rejecting the delay condonation application and imposed a cost of Rs. 20,000, which the petitioner had already deposited.

4. The High Court directed the Tribunal to decide and dispose of the appeal without raising the limitation issue but subject to complying with other statutory provisions. The Registry was instructed to return the deposited amount to the respondent, the Commissioner of Central Excise and Service Tax, Vadodara II, by handing over a cheque to the respondent's counsel.

5. Ultimately, the petition was allowed, and the rule was made absolute to the extent of quashing the impugned order, allowing the appeal to proceed without limitation issues, and facilitating the return of the deposited amount to the respondent.

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