2026 (2) TMI 123 - AT - Service Tax

Condonation of delay in tax appeal: appellate power limited to a short condonable period, late appeals dismissed

Appeal procedure challenge concerns condonation of delay for filing an appeal against an original order; appellate authority's condonation power is ... Condonation of delay in filing appeal - limitation and statutory period for preferring appeal - forum shopping and invocation of writ jurisdiction - appellate authority's power to condone delay - exclusion of Section 5 of the Limitation Act and applicability of Section 14 - proviso to Section 85(3A) of the Finance Act, 1994 - HELD THAT:- It is clear that the matter was fixed for final hearing with the consent of Counsel but see fails to appear today i.e. 15.01.2026. The matter was adjourned either on account of non presence of the counsel or on the request of counsel on 29.09.2025, 06.11.2025, 28.11.2025 and on 06.01.2026. The matter was fixed for hearing after seeking the convenience of counsel and on assurance of presence today. The proviso to Section 35C (1A) restricts the total number of exemptions that could be granted to either side in appeal to three. Thus, do not find any reason to further adjourn this matter in absence of any request. It is observed that the appeal was to be filed before the Commissioner (Appeal) after the condonable period from the date of the receipt of the Order-in-Original by the appellant. As per the proviso Commissioner (Appeal) has been granted the power to condone delay of one month in filing the appeal on sufficient cause being shown. In the present case appeal was filed before the Commissioner (Appeal) after expiry of condonable period from the date of receipt of Order-in-Original. Hence Commissioner (Appeal) has rightly held that appeal was filed beyond the prescribed period of limitation and has dismissed the same on this ground alone. This issue is squarely covered by the decision of Hon’ble Supreme Court in the case of M/s Singh Enterprises [2007 (12) TMI 11 - SUPREME COURT], wherein it has been held that Commissioner (Appeals) could not condone the delay beyond the 30 days in filing the appeal before him. Accordingly, No find merits in this appeal filed by the appellant. Appeal is dismissed. Issues: Whether the appeal filed before the Commissioner (Appeals) was barred by limitation and whether condonation of delay beyond the statutory condonable period could be granted.Analysis: The Tribunal examined statutory limitation provisions governing appeals to appellate authorities, specifically the time limits and proviso permitting limited condonation. Section 85(3A) of the Finance Act, 1994 prescribes the period for presenting an appeal and allows only a further limited period on satisfaction of sufficient cause. The Tribunal applied settled precedents holding that the appellate authority's power to condone delay is circumscribed by the statutory proviso and that Section 5 of the Limitation Act cannot be invoked to extend the statutorily prescribed condonable period. The Tribunal analysed case-law on the applicability and limits of Section 14 (exclusion for proceedings bona fide in a wrong forum), the consequences of forum shopping, and the requirement of bona fide and due diligence when invoking protection for time spent in wrong forum proceedings. The appellant's repeated adjournments, failure to appear when finally listed, and lack of acceptable explanation for the substantial delay were considered in light of these principles.Conclusion: The appeal is time-barred and the appellant is not entitled to condonation of delay beyond the statutory condonable period; the appeal is dismissed.