Limitation under Finance Act appellate procedure cannot bar an appeal filed within the COVID-extended period; remand followed.

An appeal under the Finance Act, 1994 was examined on the issue of limitation under Section 85(3A) in light of the COVID-19 extension and the Supreme Court's direction excluding the relevant limitation period. Because the filing dated 25.09.2020 fell within the extended/excluded period, the rejection of the appeal as time-barred was unsustainable. As the Commissioner (Appeals) had not examined the merits, the dispute was remitted for fresh appellate adjudication on merits.

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Issues: Whether the appeal before the Commissioner (Appeals) was barred by limitation, and whether the matter should be remanded for decision on merits.

Analysis: The appeal was rejected solely on limitation. The applicable appellate limitation under Section 85(3A) of the Finance Act, 1994 was examined along with the effect of the COVID-19 related extension and the exclusion of the limitation period directed by the Supreme Court. In view of the extended/excluded period, the filing on 25.09.2020 was treated as within time. Since the dismissal on limitation was found unsustainable, the merits had not been examined and the dispute required reconsideration by the appellate authority.

Conclusion: The appeal was held to be within limitation and the matter was remanded to the Commissioner (Appeals) for adjudication on merits.

Final Conclusion: The limitation objection did not survive, and the dispute was sent back for fresh appellate consideration on merits.

Ratio Decidendi: Where the limitation period stands extended or excluded by binding judicial directions, an appeal filed within the extended period cannot be rejected as time-barred, and the matter must be decided on merits.

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