Court sets aside Tribunal order for delay, emphasizes deciding on merits, not dismissal for delay

The Court allowed the appeal, setting aside the Tribunal's order due to a significant delay in filing. It emphasized the importance of deciding appeals on merits and not dismissing them solely for delay, unless there is a gross delay without sufficient reason. The Court highlighted the need for the Final Appellate Authority to evaluate the case's merits before deciding. The matter was remitted back for a decision on merits after providing a hearing to both parties, with no costs imposed on the Assessee.

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Issues:
Appeal dismissal due to delay in filing.

Analysis:
The appeal was filed by the Assessee against an order imposing a penalty of Rs. 50,000 for violating Regulation No. 11(a) and (n) of CBLR, 2013. The Tribunal dismissed the appeal solely on the ground of a significant delay of 764 days in filing the appeal. The Tribunal noted that the Assessee failed to promptly avail the appeal remedy and deliberately chose not to file the appeal initially. The Assessee's claim of intending to expand business and facing potential issues with obtaining an NOC was not supported by evidence, being termed as mere apprehension. The Tribunal emphasized that the law of limitation cannot favor those who delay without sufficient cause.

The Counsel for the Appellant argued that the enquiry found no mis-declaration by the Assessee, but the Commissioner imposed the penalty regardless. The Tribunal's decision to dismiss the appeal based solely on delay, attributed to wrong legal advice, was contested. The Counsel for the Department did not dispute the favorable findings of the enquiry officer but supported the impugned order due to the substantial delay in filing the appeal.

Upon considering the arguments, the Court opined that the Assessee should not suffer due to the fault of the advisor/counsel. It emphasized that fact-finding bodies like the Tribunal should strive to decide appeals on merits rather than dismissing them for delay, unless there is a gross delay without sufficient reason. The Court highlighted the need for the Final Appellate Authority to evaluate the merits of the case before deciding the appeal. Consequently, the Court allowed the appeal, setting aside the Tribunal's order and remitting the matter back for a decision on merits after providing a hearing to both parties.

In conclusion, the Court disposed of the appeal without costs, emphasizing the importance of deciding appeals on their merits and ensuring that delays in filing do not unduly prejudice parties.

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