Condonation of delay in tribunal appeal granted where merits hearing served the ends of justice, subject to costs.

Delay in filing an appeal before the Tribunal may be condoned at the court's discretion where the explanation is assessed with the overall dispute and hearing on merits would better serve the ends of justice. Here, the appeal was filed after a 69-day delay within a 120-day filing period, and the explanation was accepted as sufficient to justify a hearing rather than disposal on default. The delay was therefore condoned, subject to payment of costs.

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Issues: Whether the delay in filing the appeal before the Tribunal should be condoned.

Analysis: The period for filing the appeal was 120 days and the appeal had been filed with a delay of 69 days. The power to condone delay under Section 35B(5) of the Central Excise Act, 1944 is discretionary. The explanation offered for the delay was to be assessed along with the overall grounds in the appeal, since condonation would enable adjudication of the service tax dispute on merits rather than disposal on default. The Court held that the ends of justice would be served by granting an opportunity of hearing on terms.

Conclusion: The delay was required to be condoned, and the application for condonation was allowed on payment of costs.

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