Appeal dismissed for non-prosecution after ten adjournments exceeded statutory maximum under Rule 20

CESTAT Allahabad dismissed an appeal for non-prosecution under Rule 20 of CESTAT Procedure Rules, 1982. The tribunal noted that ten adjournments were granted between 2015-2019, with multiple "last chance" orders for cross-examination and cost imposition. Following SC precedent in Ishwar lal Mali Rathod condemning mechanical adjournments, the tribunal held there was no justification for exceeding the statutory maximum of three adjournments when the appellant failed to utilize granted opportunities.

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Issues Involved:
1. Request for Adjournment
2. Section 35C (1A) of the Central Excise Act, 1944
3. Rule 20 of CESTAT Procedure Rules, 1982
4. Misuse of Adjournments

Detailed Analysis:

1. Request for Adjournment:
The Counsel for the appellant repeatedly requested adjournments, which were granted on several occasions. The appeal was listed for hearing on multiple dates: 17.08.2023, 22.09.2023, 08.03.2024, 21.03.2024, and the current date. Despite these opportunities, the appellant's counsel continued to seek adjournments, either in person or through letters. The Tribunal noted that the requests for adjournment were mechanical and without substantial justification, leading to delays in the proceedings.

2. Section 35C (1A) of the Central Excise Act, 1944:
Section 35C (1A) allows the Appellate Tribunal to grant adjournments if sufficient cause is shown, but limits the number of adjournments to three per party. The text of the section is as follows:
"35C. Orders of Appellate Tribunal. -
(1A) The Appellate Tribunal may, if sufficient cause is shown, at any stage of hearing of an appeal, grant time, from time to time, to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal."

3. Rule 20 of CESTAT Procedure Rules, 1982:
Rule 20 addresses the action to be taken in case of the appellant's default. It provides the Tribunal with the discretion to either dismiss the appeal for default or hear and decide it on merits if the appellant does not appear when the appeal is called on for hearing. The rule states:
"Action on appeal for appellant's default. - Where on the day fixed for the hearing of the appeal or on any other day to which such hearing may be adjourned, the appellant does not appear when the appeal is called on for hearing, the Tribunal may, in its discretion, either dismiss the appeal for default or hear and decide it on merits:
Provided that where an appeal has been dismissed for default and the appellant appears afterwards and satisfies the Tribunal that there was sufficient cause for his non-appearance when the appeal was called on for hearing, the Tribunal shall make an order setting aside the dismissal and restore the appeal."

4. Misuse of Adjournments:
The Supreme Court has condemned the misuse of adjournments in various judgments. In the case of Ishwar lal Mali Rathod, the Supreme Court highlighted the detrimental impact of repeated adjournments on the justice delivery system. The Court emphasized that such practices are an "insult to justice and concept of speedy disposal of cases." The Court also referenced other cases, such as Shiv Cotex v. Tirgun Auto Plast (P) Ltd. and Noor Mohammed v. Jethanand, to illustrate the negative effects of adjournments on the judicial process and the importance of timely justice.

Conclusion:
In light of the statutory provisions and judicial precedents, the Tribunal found no justification for adjourning the matter beyond three times. Consequently, the appeal was dismissed for non-prosecution in terms of Rule 20 of the CESTAT Procedure Rules, 1982. The Tribunal emphasized the importance of timely justice and the need to avoid unnecessary delays in the judicial process.

Order:
The appeal is dismissed for non-prosecution.

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