COVID-19 limitation exclusion prevents dismissal of appeal as time barred and requires merits-based reconsideration

The delay in filing the appeal fell within the period covered by the Supreme Court's COVID-19 exclusion of limitation from 15.03.2020 to 14.03.2021. In that setting, the appellate authority should not have rejected the appeal solely as time barred, because the limitation regime during the pandemic required a non-rigid approach and consideration on merits. The dismissal on limitation was therefore set aside, and the matter was remanded to the Commissioner (Appeals) for decision on merits.

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Issues: Whether the appeal before the Commissioner (Appeals) was liable to be rejected as time barred despite the COVID-19 extension of limitation and the consequent delay in filing the appeal could be condoned, and whether the matter should be remanded for decision on merits.

Analysis: The delay occurred during the pandemic period when the Supreme Court had directed exclusion of the period from 15.03.2020 to 14.03.2021 while computing limitation for proceedings, including appeals. The order held that the limitation regime applicable during the pandemic did not justify a rigid approach to dismissal of the appeal solely on limitation, and the appeal ought to have been considered on merits. In these circumstances, the rejection of the appeal as time barred was not sustainable.

Conclusion: The dismissal of the appeal on limitation was set aside and the matter was remanded to the Commissioner (Appeals) for decision on merits.

Ratio Decidendi: Where the delay in filing an appeal falls within the period covered by the Supreme Court's exclusion of limitation during the COVID-19 pandemic, the appellate authority should not non-suit the appellant solely on limitation and must decide the matter on merits.

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