Tribunal allows appeal despite 842-day delay in filing. Permissible to pursue refund claim and appeal simultaneously. The Tribunal allowed the delay condonation application for filing an appeal seeking to quash an order dated June 14, 2019, despite a delay of about 842 ...
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Tribunal allows appeal despite 842-day delay in filing. Permissible to pursue refund claim and appeal simultaneously.
The Tribunal allowed the delay condonation application for filing an appeal seeking to quash an order dated June 14, 2019, despite a delay of about 842 days. The appellant's submission of a refund claim under the Central Excise Act, 1944, led to a show cause notice proposing to reject the claim. The appeal was filed after a subsequent notice on January 16, 2021. The Tribunal held that pursuing both remedies simultaneously was permissible, and the delay in filing the appeal was satisfactorily explained, leading to the condonation of the delay.
Issues: Delay in filing appeal seeking quashing of order dated June 14, 2019 - Condonation of delay application.
Analysis: The appeal was filed seeking to quash an order dated June 14, 2019, with a delay of about 842 days. An application for condoning the delay in filing the appeal was submitted. The appellant had earlier transitioned the CENVAT credit involved in goods returned by filing GST TRAN-I under the Central Goods and Service Tax Act, 2017. Despite this, a refund of the excise duty on the returned goods was also claimed under section 11B of the Central Excise Act, 1944, as a precautionary measure. A show cause notice was issued proposing to reject the refund claim since the amount was already availed in TRAN-I, and the refund claim was indeed rejected based on the verification of TRAN-I. An appeal was made to the Commissioner (Appeals), which was dismissed on June 14, 2019.
The counsel for the appellant argued that the cause of action to file the appeal arose only when a show cause notice was issued on January 16, 2021, proposing to deny the CENVAT Credit availed in TRAN-I. The appeal was filed on January 12, 2022, based on this new development. On the other hand, the authorized representative for the Department opposed the delay condonation application, claiming that the appellant should not be allowed to pursue both remedies simultaneously.
The Tribunal found that while the appellant might not ultimately benefit from both remedies, there was no legal bar to prevent the appellant from pursuing both avenues simultaneously. Considering the circumstances, the Tribunal concluded that the delay in filing the appeal had been satisfactorily explained, and therefore, the delay condonation application was allowed. The order was dictated and pronounced in open court.
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