Court quashes order, directs compliance with pre-deposit, allows Writ Petition.

The court quashed the impugned order and directed the petitioner to comply with the pre-deposit condition within four weeks. Upon compliance, the 1st respondent was instructed to entertain and dispose of the appeal on merits, ensuring due process for all parties involved. The Writ Petition was allowed without costs, and the connected Miscellaneous Petition was closed.

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Issues:
Challenge to order in appeal due to non-compliance with pre-deposit condition and delay in filing the appeal.

Analysis:
The petitioner challenged the order in appeal passed by the 1st respondent, contending that the appeal against the Order-in-Original was dismissed for failure to comply with the mandatory pre-deposit under the Central Excise Act. The petitioner, now willing to pay the pre-deposit, had earlier refrained due to frozen bank accounts. However, the impugned order rejected the appeal not only for non-compliance with the pre-deposit but also for delay in filing the appeal.

The impugned order highlighted that the appeal was filed over a year after receiving the Order-in-Original, exceeding the prescribed time limit for filing. The appellant sought condonation of delay, stating it was due to approval from higher authorities. The Commissioner (Appeals) can condone delays beyond two months for a further month if satisfied with the reasons. However, the appeal in this case was filed well beyond the permissible period, breaching Section 85(3A) of the Finance Act, 1994.

The court emphasized that appeals by aggrieved parties must be decided on merits under all circumstances. Acceptable reasons for delay should be considered to provide a fair opportunity for adjudication. In this case, the petitioner failed to make the mandatory pre-deposit due to frozen bank accounts and filed the appeal belatedly during the pendency of a Writ Appeal before the Division Bench of the High Court.

Consequently, the court quashed the impugned order and directed the petitioner to comply with the pre-deposit condition within four weeks. Upon compliance, the 1st respondent was instructed to entertain and dispose of the appeal on merits, ensuring due process for all parties involved. The Writ Petition was allowed without costs, and the connected Miscellaneous Petition was closed.

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