Tribunal grants appeal, acknowledges delays, emphasizes practical challenges, upholds statutory right.

The Tribunal allowed the Principal Collector's application, condoned the delay in filing the appeal, and directed the appeal to proceed for hearing and disposal on merits. The Tribunal emphasized the importance of recognizing the practical challenges faced by public institutions and upheld the Principal Collector's statutory right to appeal under Section 128A(5) of the Customs Act.

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Issues Involved:
1. Condonation of delay in filing the appeal.
2. Proper service of the Collector (Appeals) order under Section 128A(5) of the Customs Act.
3. The statutory right of the Principal Collector to file an appeal.
4. Interpretation of "sufficient cause" for delay in the context of public institutions.

Issue-Wise Detailed Analysis:

1. Condonation of Delay in Filing the Appeal:
The Principal Collector of Customs, Bombay, filed an appeal against the Order No. S/49-409/85 CC dated 17-7-1985 passed by the Collector of Customs (Appeals), Bombay. The appeal was filed on 6-3-1986, beyond the prescribed three-month period under Section 129A(3) of the Customs Act. The Principal Collector requested condonation of this delay, arguing that the delay was due to the time taken in resolving the classification of the imported goods and the issuance of Public Notice No. 164 dated 19-11-1985.

2. Proper Service of the Collector (Appeals) Order under Section 128A(5) of the Customs Act:
Shri Sethna argued that the Collector (Appeals) order was not properly served on the Principal Collector as required under Section 128A(5) of the Customs Act. The order was served on the Assistant Collector, T.C.U., which, according to Sethna, did not fulfill the statutory requirement. This lack of proper service meant that the Principal Collector was unaware of the order and thus could not file the appeal within the prescribed time.

3. The Statutory Right of the Principal Collector to File an Appeal:
The Tribunal noted that the Standing Orders, which were created by the Collector, did not align with the statutory requirements of Section 128A(5). This misalignment deprived the Principal Collector of his statutory right to file an appeal. The Tribunal concluded that the copy of the appellate order was never received by the Principal Collector, which justified the delay in filing the appeal.

4. Interpretation of "Sufficient Cause" for Delay in the Context of Public Institutions:
The Tribunal considered the judgment of the Bombay High Court in the case of State Bank of India (AIR 1986 BOM 246), which distinguished between public institutions and private parties regarding the interpretation of "sufficient cause" for delay. The High Court observed that public institutions should not be treated on par with private individuals due to the bureaucratic setup and the general disinterest of employees in safeguarding public property. The Tribunal found this reasoning applicable to the present case, noting that the delay was due to the oversight of the concerned officers, which deprived the Principal Collector of his statutory right to appeal.

Conclusion:
The Tribunal allowed the application of the Principal Collector, condoned the delay in the presentation of his appeal, and directed that the appeal be admitted for hearing and disposal on merits in due course. The Tribunal emphasized the need to consider the practical realities faced by public institutions and the statutory rights of the Principal Collector under Section 128A(5) of the Customs Act.

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