2019 (5) TMI 872 - HC - Service Tax

Tribunal's Delay Refusal Overturned: High Court Condoned Late Appeal Filing

P SURESH Versus Commissioner of Central Excise, Customs and Service Tax

P SURESH Versus Commissioner of Central Excise, Customs and Service Tax - 2019 (26) G.S.T.L. 469 (A. P.) Issues involved:Delay in filing an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), justification for condonation of delay, refusal of Tribunal to condone delay, validity of reasons for delay, substantial question of law regarding the Tribunal's approach in condonation of delay.Analysis:The judgment involves a case where the Assessee filed an appeal under Section 35G of the Central Excise Act, 1944, challenging the dismissal of an application for condonation of delay of 350 days in filing an appeal before the CESTAT. The Order-in-Original demanded service tax for taxable services provided by the appellant, along with interest and penalties under the Finance Act, 1994. The appellant's appeal and delay condonation application were dismissed by the Tribunal, leading to the current appeal.The main issue raised in the appeal was whether the Tribunal was justified in adopting a pedantic approach in the matter of condonation of delay. The appellant cited the death of his brother as a reason for the delay, supported by a death certificate, which was not disputed. The Tribunal, however, held that since the brother's demise occurred before the receipt of the Order-in-Original, it was not a valid ground for condonation of delay. The High Court questioned this reasoning, noting that the brother's death happened after the order was passed but before it was received, making the timing of service of the order irrelevant to the delay.The Court found the Tribunal's refusal to condone the delay contrary to law and unjustified, especially considering the appellant had already filed a VCES application and paid the entire service tax liability. Consequently, the question of law was answered in favor of the appellant, and the appeal was allowed. The delay in filing the appeal was condoned, directing the Tribunal to number the appeal and proceed with disposal according to the law. No costs were awarded, and any pending miscellaneous applications in the appeal were to be closed as a result of the judgment.