Effective statutory service on the proper recipient is essential where a closed company faces winding-up-related proceedings.

Effective statutory service of an adjudication order on the person legally entitled to receive it is essential where a company is closed or involved in winding-up proceedings. Service by affixation at the factory gate was treated as insufficient in the circumstances, and failure to serve the Official Liquidator was material. On that basis, dismissal of the appeals solely as time-barred was not justified; the delay was condoned and the matters were remanded for decision on merits in accordance with law.

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Issues: Whether the adjudication orders were required to be served on the Official Liquidator when the company had been closed and winding-up proceedings were in issue, and whether the appeals dismissed as time-barred should be restored and remanded for fresh consideration.

Analysis: Service under section 37C was not treated as a mere formality. Since the company was shown to be closed at the relevant time, and the order was not effectively served on the person who ought to have received it in the circumstances, the service adopted by affixation at the factory gate was found insufficient to sustain the dismissal of the appeals on limitation alone. The failure to serve the order on the Official Liquidator was held to be material, and the refusal to examine the matter on merits on the premise that delay could not be condoned was not justified.

Conclusion: The question was answered in the affirmative in favour of the assessee and against the Revenue. The impugned orders were set aside, delay was condoned, and the matters were remanded to the Commissioner (Appeals) for decision on merits in accordance with law.

Ratio Decidendi: Where a company is closed or under winding-up related circumstances, effective statutory service of the adjudication order on the person legally entitled to receive it is essential, and an appeal should not be shut out on limitation where such service is found wanting.

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