2026 (3) TMI 519 - AT - Customs

Abatement on death of party: appeal abates where no timely continuance application by legal representative is filed.

Rule 22 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 provides that proceedings abate on the death of a party unless a ... Effect of the appellant's death on the pending appeal - no application for continuance by the successor-in-interest or legal representative has been filed under Rule 22 - Abatement of proceedings - non-prosecution against deceased violates natural justice. Continuance under Rule 22 of CESTAT Procedure Rules - HELD THAT:- The Tribunal applied Rule 22 which provides that an appeal shall abate on the death of an appellant unless an application for continuance is made by the legal representative within sixty days (subject to extension for sufficient cause). The record showed no application for continuance had been filed. Therefore the statutory mechanism for continuation was not invoked and the appeal could not be maintained in the absence of such an application. [Paras 4, 5] The appeal abated for want of an application for continuance under Rule 22. Non-prosecution against deceased violates natural justice - HELD THAT:- The Tribunal relied on the Supreme Court decision in Shabina Abraham & Ors. v. Collector of Central Excise & Customs [2015 (7) TMI 1036 - SUPREME COURT], which holds that proceedings cannot be continued against a dead person as that would violate natural justice because the deceased cannot defend himself; accordingly, absent statutory provision properly invoked for taxing the estate, continuation against the deceased is impermissible. Applying that precedent, the Tribunal found continuation of the appeal against the deceased appellant impermissible. [Paras 6, 7] Proceedings cannot be continued against the deceased appellant and the appeal stands abated. Final Conclusion: The Tribunal held that the appeal abated on the death of the appellant because no application for continuance under Rule 22 was made and continuation against a deceased person is impermissible; the appeal was disposed of accordingly. Issues: Whether the appeal abates on the death of the sole proprietor-appellant where no application for continuance by the successor-in-interest or legal representative has been filed under Rule 22 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982.Analysis: Rule 22 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 provides that proceedings shall abate on the death of a party unless an application for continuance is filed by the successor-in-interest, executor, administrator or other legal representative within sixty days (subject to extension for sufficient cause). The judgment in Shabina Abraham & Ors. v. Collector of Central Excise & Customs establishes that proceedings cannot be continued against a deceased person and that the estate or legal representative must be joined for continuance. In the present case, the proprietor died during pendency of the appeal and no application for continuance by any legal representative has been filed within the stipulated period.Conclusion: The appeal abates for non-joinder/absence of an application for continuance by the legal representative and is disposed of; result is in favour of the Revenue.