Condonation of delay in tax appeal required where service was on an unauthorised watchman and merits were never examined.

Delay in filing the appeal was held to be condonable because the adjudication order had been served at a factory under lockout and received by a watchman who was not authorised to accept it. The Commissioner (Appeals) should therefore have exercised the power to condone delay and heard the exemption dispute on merits instead of rejecting the appeal solely on limitation. As the substantive issue had never been examined, the impugned order was set aside and the matter remanded for fresh consideration after hearing the appellant.

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Issues: Whether the delay in filing the appeal before the Commissioner (Appeals) ought to have been condoned and the matter heard on merits.

Analysis: The adjudication order had been served when the factory was under lockout and was received by the watchman, who was not an authorised person to receive such order. The delay, on the facts stated, was within the condonable period, and the lower appellate authority ought to have exercised its power to condone the delay instead of rejecting the appeal only on limitation. Since the merits of the exemption dispute were never examined, a remand was necessary.

Conclusion: The delay should have been condoned and the appeal considered on merits. The impugned order was set aside and the matter remanded to the Commissioner (Appeals) for fresh after hearing the appellant.

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