304-Day Delay in Filing Customs Appeal Under Section 129A Condoned on Payment of Rs. 1 Lakh Costs

The HC condoned a 304-day delay in filing an appeal under Section 129A of the Customs Act, finding sufficient cause for the delay. The adjudicating authority had imposed classification duties amounting to Rs. 1.59 crores plus interest and a Rs. 4 lakh penalty. Given the substantial duty and reasons for delay, the court allowed the petitioner to be heard on merits. Delay was condoned on payment of Rs. 1 lakh costs to the Department within four weeks. Upon payment, the appeal will be listed before the CESTAT for merit consideration. The appeal was disposed of accordingly.

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The Delhi High Court, in a second appeal against the CESTAT order dated 30th June 2023, addressed the refusal to condone a 304-day delay in filing an appeal against an adjudicating authority's order dated 22nd February 2022. The appellant's appeal was filed on 31st March 2023, well beyond the prescribed three-month period under Section 129A(3) of the Customs Act, 1962. Although Section 129A(5) allows condonation of delay upon sufficient cause, CESTAT had dismissed the appeal as non-condonable. The adjudicating authority's order involved denial of classification benefits, imposition of additional customs duty of Rs. 1.59 crores under Section 28(1), interest under Section 28AA, and a penalty of Rs. 4 lakhs under Section 117, while rejecting confiscation and penalty under other sections. Recognizing the substantial demand and the reasons for delay, the High Court held that the appellant "deserves to be heard on merits" and accordingly "condone[d] the delay" subject to payment of costs of Rs. 1 lakh to the Department. Upon payment within four weeks, the appeal will be listed before CESTAT for consideration on merits. The Court explicitly stated it had not examined the merits of the appeal in this order.

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