Liberal condonation of delay applies where a statutory appeal is supported by plausible illness-based explanation and no wilful negligence.

A short delay in filing a statutory appeal may be condoned where the explanation is plausible and does not show wilful negligence. Here, the delay was supported by an undisputed medical certificate showing that the employee handling the matter was ill, and the difficulty in arranging the pre-deposit was also considered. The Court noted that the delay was only 96 days, the service tax liability had already been discharged under the VCES scheme, and the Tribunal should have taken a liberal view in the interests of justice. The refusal to condone delay was held unsustainable, and the appeal was directed to be numbered and heard according to law.

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Issues: Whether the Tribunal was justified in refusing to condone the 96 days' delay in filing the appeal despite the delay being explained on the basis of illness of the person handling the matter and difficulty in arranging the pre-deposit amount.

Analysis: The appellant supported the delay application with a medical certificate showing that the concerned employee could not attend office due to ill-health, and the certificate was not disputed. The Court noted that the delay was not excessive, that the appellant had already discharged the service tax liability under the VCES scheme, and that the explanation for the delay did not disclose total negligence. In such circumstances, the Tribunal ought to have taken a liberal view while considering condonation of delay, especially when the remedy sought was statutory and the delay was only 96 days.

Conclusion: The refusal to condone delay was unsustainable. The question of law was answered in favour of the assessee, the delay was condoned, and the Tribunal was directed to number the appeal and decide it in accordance with law.

Ratio Decidendi: A short delay in pursuing a statutory appeal, when supported by a plausible medical explanation and absent wilful negligence, warrants a liberal approach in condoning delay.

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