Appellate Tribunal grants condonation for delay in appeal filing by BOPP Film manufacturer of Delay

The Appellate Tribunal CEGAT, Mumbai, allowed the condonation of delay in filing an appeal by a public limited company manufacturing Biaxially Oriented Polypropylene Film. The company claimed exemption under Notification No. 68/71 for flexible plastic articles, leading to a dispute with the Collector of Central Excise and Customs. Despite the delay in filing the appeal, the Tribunal considered the appellant's pursuit of legal remedies under Article 226 of the Constitution as a valid reason and granted condonation. The Tribunal emphasized that the appellant did not need to file a separate application for waiver of pre-deposit due to the High Court's stay order on tax recovery until the appeal's disposal.

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Issues:
Delay in filing appeal before Appellate Tribunal CEGAT, Mumbai.

Analysis:
The judgment deals with an application for condonation of delay in filing an appeal before the Appellate Tribunal CEGAT, Mumbai. The impugned order by the Collector of Central Excise and Customs was made on 25-12-1984, and the appeal was filed on 31-5-1999. The appellant, a public limited company manufacturing Biaxially Oriented Polypropylene Film (BOPP), claimed exemption under Notification No. 68/71 for flexible plastic articles. The Collector levied duty on the goods, leading to a Writ Petition filed before the Aurangabad Bench of the Bombay High Court. The High Court directed the appellant to file an appeal before CEGAT within six weeks, considering the delay in filing the appeal.

The question before the Tribunal was whether to condone the delay in filing the appeal. Section 35B of the Central Excise law mandates filing an appeal within 3 months, with provision for condonation of delay if sufficient cause is shown. The appellant had pursued legal proceedings under Article 226 of the Constitution, leading to delay in filing the appeal. The High Court granted stay and directed the appellant to approach CEGAT, indicating a sufficient cause for the delay. The Tribunal considered the circumstances and allowed the condonation of delay, emphasizing that the appellant had valid reasons for the delay due to pursuing legal remedies.

The judgment highlighted that the appellant was not required to file an application for waiver of pre-deposit as the High Court had already granted a stay on recovery of tax until the appeal was disposed of by CEGAT. The Tribunal acknowledged the High Court's directions and allowed the condonation of delay, ensuring the appeal would be heard on its merits in due course. The decision provided a comprehensive analysis of the legal provisions governing the filing of appeals and the discretion available to the Tribunal in condoning delays based on sufficient cause shown by the appellant.

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