Condonation of delay in customs appeal granted where arguable merits and interests of justice supported hearing on substance.

Delay of 146 days in filing the appeal before CESTAT was treated as condonable because the explanation, though not fully substantial, did not show inordinate delay and the interests of justice favoured hearing the matter on merits. The petitioner also had an arguable case on duty liability, as the re-test report indicated Fe content below the threshold for the concessional rate. The delay was therefore to be condoned subject to payment of costs, enabling the appeal to be considered in accordance with law.

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Issues: Whether the delay of 146 days in filing the appeal before the CESTAT should be condoned.

Analysis: The Court noted that the petitioner had an arguable case on the merits of the duty liability, since the re-test report indicated Fe content below the threshold attracting the concessional rate. Although the explanation for the delay was not wholly substantial, the delay was not inordinate and the interests of justice warranted exercise of discretion in favour of hearing the appeal on merits.

Conclusion: The delay deserved to be condoned, subject to payment of costs, so that the appeal could be considered by the CESTAT in accordance with law.

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