2006 (9) TMI 177 - AT - Central Excise

Tribunal dismisses department's appeal due to delay; stresses importance of legal timelines

COMMISSIONER OF C. EX., CHENNAI Versus DOLLAR & CO. (P) LTD.

The Appellate Tribunal CESTAT CHENNAI dismissed the department's application for condonation of delay in filing their appeal. The Tribunal found the ... Application filed by the department (appellant) is for condonation of delay of their appeal - According to the appellant, this delay is due to “the non-cooperation on the part of the assessee with an intention to evade payment of duty” – this reason is not a sufficient cause for delay - delay of the appeal has not been satisfactorily explained by the appellant (revenue) – application; consequently the appeal also gets dismissed as time-barred. Issues: Condonation of delay in filing appeal, non-cooperation of assessee, satisfactory explanation for delayIn this case, the Appellate Tribunal CESTAT CHENNAI considered an application filed by the department for condonation of delay in filing their appeal. The impugned order was received on 14-10-2005, and the appeal should have been filed by 14-1-2006. However, the appeal was filed on 17-4-2006, with a delay of 90 days. The department claimed that the delay was due to the non-cooperation of the assessee, who allegedly did not provide necessary invoices, leading to a delay in retrieving them. The department approached the assessee, who stated that the invoices were lost in floods. The department then obtained some invoices but claimed they were insufficient. The department further searched for more invoices from the assessee's dealers, which delayed the decision to file the appeal until 31-3-2006, with the actual filing on 17-4-2006.The Tribunal examined the records and submissions and found the department's explanation unsatisfactory. The Tribunal noted that the department's decision to search for additional invoices not part of the adjudication record was an unnecessary venture into further investigation, which is not recognized in law. The Tribunal emphasized that there is no legal requirement for the assessee to cooperate with the department in the filing of an appeal. The Tribunal highlighted that the department's claim of non-cooperation by the assessee was not a valid reason for the delay. Additionally, the Tribunal pointed out that the delay from the decision to file the appeal on 31-3-2006 to the actual filing on 17-4-2006 was not adequately explained by the department.Ultimately, the Tribunal dismissed the department's application for condonation of delay, leading to the dismissal of the appeal as time-barred. The judgment underscores the importance of adhering to timelines in legal proceedings and highlights that reasons for delay must be valid and in line with legal requirements, emphasizing that cooperation between parties in such matters is not a legal obligation.