Limitation and bona fide pursuit before a wrong forum allowed exclusion of time, leading to condonation and remand.

Time bona fide spent in pursuing rectification before the refund-passing authority, and in a procedurally mistaken course caused by inadequate intimation on the appeal form and limitation, was treated as excludable while computing limitation for the statutory appeal. Applying limitation principles and cited precedents, the Tribunal held that the appeal before the Commissioner (Appeals) was within the condonable period after exclusion of that time. The delay was therefore condoned, and the matter was remanded for fresh decision on merits in accordance with law and natural justice.

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Issues: Whether the delay in filing the appeal before the Commissioner (Appeals) was liable to be condoned by excluding the period spent by the appellant in pursuing rectification before the refund-passing authority and other authorities, and whether the matter was required to be remanded for decision on merits.

Analysis: The refund order was found to have been served without the prescribed preamble indicating the appeal form and limitation. The appellant had thereafter addressed letters to the refund-passing authority and the appellate authority seeking correction of the short payment, but no response was received. The Tribunal applied the principle that time bona fide spent in prosecuting a remedy before a wrong forum, or in a procedurally mistaken course induced by lack of proper intimation, can be excluded while computing limitation. Relying on the principle recognised in the law of limitation and the cited precedents, the Tribunal held that the appeal before the Commissioner (Appeals) fell within the condonable period after excluding the time so spent.

Conclusion: The delay was condoned and the matter was remanded to the Commissioner (Appeals) for decision on merits in accordance with law and natural justice.

Ratio Decidendi: Time bona fide spent in pursuing a remedy before a wrong forum, or in a mistaken procedural course attributable to lack of proper guidance, is excludable for computing limitation for filing the proper appeal.

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