Delay condonation in appeal should favor merits where non-receipt is plausible and no mala fides or revenue prejudice is shown.

A delayed appeal should be condoned where the appellant gives a plausible explanation for non-receipt of the order, obtains a certified copy later, and there is no material showing mala fides or prejudice to revenue. The Madras HC reiterated that limitation is a rule of public policy, but it should not be applied so rigidly as to defeat adjudication on merits. On the facts noted, the Tribunal ought to have exercised discretion in favour of a merits-based hearing, and the matter was remitted for fresh decision on merits.

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Issues: Whether the delay in filing the appeal before the Tribunal should be condoned and the matter remanded for decision on merits.

Analysis: The appeal challenged the Tribunal's refusal to condone delay arising from the disputed service of the order in appeal. The Court noted that the assessee asserted non-receipt of the order, obtained a certified copy only later, and filed the appeal thereafter. It found no material from the Department to controvert the assessee's case, observed that the duty and interest had already been paid, and reiterated the settled approach that limitation serves public policy but is not intended to defeat adjudication on merits where no mala fides are shown. In these circumstances, the Court held that the Tribunal ought to have exercised discretion to enable a merits-based adjudication.

Conclusion: The delay was liable to be condoned and the matter was required to be heard on merits; the assessee succeeded on the issue.

Final Conclusion: The appeal was allowed, the Tribunal's order was set aside, and the matter was remitted for fresh decision on merits.

Ratio Decidendi: Where a delayed appeal is supported by a plausible explanation for non-receipt of the order and no mala fides or prejudice to revenue is shown, limitation should not be applied so rigidly as to foreclose adjudication on merits.

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