Tribunal Overturns Appeal Rejection Due to Improper Service; Cites Section 37C of Central Excise Act, 1944.

The Appellate Tribunal CESTAT AHMEDABAD set aside the rejection of the appellant's appeal, which was initially dismissed as time-barred. The Tribunal determined that the Commissioner (Appeals) violated principles of natural justice by not notifying the appellant about the delay. Additionally, the service of the order was improper, as it was not sent by registered post as required by Section 37C of the Central Excise Act, 1944. The order was only received by the appellant on 27.03.2015, making the appeal timely. The case was remanded to the Commissioner (Appeals) for a decision on merit.

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Issues: Appeal rejection on the ground of time bar; Violation of principles of natural justice; Proper service of order under Section 37C of Central Excise Act, 1944.

In this case, the appellant's appeal was rejected by the Appellate Tribunal CESTAT AHMEDABAD on the basis of being time-barred as it was filed after 3 years from the date of the order. The appellant argued that the Commissioner (Appeals) did not provide notice regarding the delay in filing the appeal, thus violating principles of natural justice. It was contended that the order was not received by the appellant and was only known during recovery proceedings at a partner's residence. The order was eventually provided to the appellant on 27.03.2015, and the appeal was filed within the prescribed period, negating the time bar. The department's service of the order was deemed improper as it was affixed on the notice board of the Assistant Commissioner instead of the factory, as required by Section 37C of the Central Excise Act, 1944.

Upon review, the Tribunal found that the Commissioner (Appeals) had indeed not followed the principles of natural justice by not notifying the appellant about the delay in filing the appeal. The department's service of the order was also found to be improper as it did not comply with the sequential requirements of Section 37C. The order should have been sent by registered post first, and only affixed to the notice board as a last resort. Since the order was only received by the appellant on 27.03.2015, the appeal was filed within the stipulated time period. Consequently, the Tribunal set aside the impugned order and allowed the appeal by remanding it back to the Commissioner (Appeals) for a fresh decision solely on merit without revisiting the time bar issue.

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