Appellate remedy under Section 86 affirmed; Tribunal may condone delay and coercive action stayed pending appeal disposal.

Appellate remedy under Section 86 of the Finance Act, 1994 is available to challenge both the order-in-original and the order-in-appeal; the Tribunal has jurisdiction to consider condonation of delay, and the court relied on prima facie medical evidence to justify non-appearance as a determinative factual basis. Consequently the petitioner was granted an opportunity to file an appeal and have delay condoned where appropriate. The court also held that, balancing convenience and the nature of relief sought, interim restraint on coercive measures was warranted until the Appellate Tribunal disposes of the appeal, with filing directed within six weeks.

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Issues: Whether the writ petitioner should be permitted to pursue an appeal before the Appellate Tribunal under Section 86 of the Finance Act, 1994 and whether interim coercive action against the petitioner should be restrained pending disposal of such appeal.

Analysis: The appellate remedy under Section 86 of the Finance Act, 1994 is available to the petitioner to challenge the Order-in-Original and the Order-in-Appeal. The appellate forum has jurisdiction to consider condonation of any delay that occurred in filing the appeal. The petitioner has placed on record medical evidence prima facie indicating that non-appearance before the Commissioner (Appeals) was due to serious ill-health. In view of these circumstances and for ends of justice, an opportunity to file and have the appeal considered by the Appellate Tribunal is appropriate. Considering the balance of convenience and the nature of relief sought, interim restraint on coercive measures is warranted until the Appellate Tribunal disposes of the appeal.

Conclusion: The writ petition is disposed directing the petitioner to file an appeal before the Appellate Tribunal under Section 86 of the Finance Act, 1994 within six weeks and granting interim protection by restraining coercive action until the appeal is disposed. This disposition is in favour of the petitioner (assessee).

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