High Court dismisses petitions challenging CESTAT order due to significant delay in filing appeals. Lack of diligence and failure to respond promptly cited.

The High Court dismissed the petitions challenging a CESTAT order due to a significant delay of 684 days in filing the appeals. The petitioner's lack of diligence, failure to respond promptly to notices, and inconsistent actions led to the Court's decision not to condone the delay. Despite attempts to blame staff members for the delay, the Court found the explanations unsatisfactory and concluded that the petitioner's conduct did not merit favorable discretion. As a result, the Court rejected the petitions and CMAs at the SR stage.

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Issues: Delay in filing appeals challenging CESTAT order

Analysis:
The judgment pertains to petitions filed to condone a delay of 684 days in filing appeals before the High Court challenging an order passed by the Customs, Central Excise, and Service Tax Appellate Tribunal (CESTAT). The conduct of the petitioner before the Tribunal is scrutinized, highlighting significant delays and lack of responsiveness. The respondent issued a show cause notice proposing substantial amounts towards service tax, interest, and penalties. The petitioner failed to respond promptly, leading to multiple adjournments and non-appearance at scheduled hearings. Despite various opportunities, including a warning of an ex parte decision, the petitioner remained negligent. The adjudicating authority eventually passed an order in March 2014 due to the petitioner's inaction.

The petitioner's subsequent actions, including a delayed appeal to CESTAT and failed attempts at restoration, further demonstrate a lack of diligence. The Tribunal dismissed the petitioner's application for condonation of delay, emphasizing the petitioner's consistent neglect. Despite a recovery notice issued in late 2018, the petitioner failed to take any steps towards filing an appeal before the High Court. The discrepancy between the date the appeal was claimed to be presented and the actual filing date raised additional concerns regarding the petitioner's credibility.

Upon reviewing the affidavit filed by the petitioner, the Court noted the absence of a satisfactory explanation for the significant delay. The petitioner's attempt to shift blame onto staff members handling service tax matters was deemed insufficient. The Court concluded that the petitioner's conduct throughout the proceedings, both before the Tribunal and in subsequent actions, did not warrant the exercise of discretion in their favor. Consequently, the Court found no justification to condone the prolonged and unexplained delay, leading to the dismissal of the petitions and rejection of the CMAs at the SR stage.

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