Appellate power to condone delay in Modvat declarations upheld, with the Commissioner (Appeals) competent to grant credit.

The appellate authority under excise law could examine and condone delay in filing a Modvat declaration because the right of appeal carried power to confirm, modify, or alter the order appealed against, subject to statutory limits. That competence extended to the issue decided by the original authority, so the Commissioner (Appeals) was within jurisdiction to grant relief. The reasons recorded for condonation were found valid, and the Revenue did not effectively challenge the merits of that relief. The order allowing Modvat credit was therefore upheld.

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Issues: Whether the Commissioner (Appeals) had jurisdiction to condone the delay in filing the Modvat declaration and allow the credit, and whether the order granting such relief called for interference.

Analysis: The right of appeal under the excise law enabled the aggrieved party to challenge the order refusing condonation. The appellate authority had wide powers to confirm, modify or alter the order appealed against, and those powers extended to the question decided by the original authority, subject to statutory limitations. The delay in filing the declaration was therefore within the competence of the Commissioner (Appeals) to examine and condone. On merits, the reasons recorded for condonation were found to be valid, and the Revenue did not effectively dispute the merits of that relief.

Conclusion: The Commissioner (Appeals) was competent to condone the delay and allow the Modvat credit, and the impugned order was upheld.

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