The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench has held that delay in filing appeal due to mental insanity and condones delay of 1354 days.
The appellant, M/s Rosa Impex Private Limited filed an appeal before the Commissioner (Appeals) against the order of rejection passed by the refund sanctioning authority who erroneously gave a finding that the same is one of the rebates, supposed to be Governed under Notification No. 41/2012-ST which should have been filed within one year from the date of export.
The Commissioner (Appeals) rejected the appeal solely on the ground of a delay of 1354 days in filing appeals. The aggrieved appellant filed an appeal before CESTAT for acceptance of appeal by condoning the delay and directing the Commissioner (Appeals) to decide the appeal afresh on merit.
The counsel for the respondent submitted that the Commissioner (Appeals), as per provisions of the statute prescribed under Section 85(3) of the Finance Act, 1994 had no condonable power beyond 60 plus 30 days.
The Coram of Dr. Suvendu Kumar Pati, Member (Judicial) by relying on the decision of the Supreme Court in MP Steel Corporation observed that the spirit of the principle laid down in the Indian Limitation Act for extension of the limitation period upon contingencies/circumstances enumerated between Section 6 and 24 of the said Act is to be pressed into service in advancing substantial justice.
The Tribunal has held that a “in acceptance of the death of Managing Director and brain hemorrhage of the present Director of the Appellant Company as legal disability due to mental insanity, etc. delay in filing the appeal before the Commissioner (Appeals) is condoned at this end by invoking the principle enumerated under Section 6 of the Indian Limitation Act and the matter is remanded back to the Commissioner (Appeals) for a de novo hearing on the merit of the appeal against the order passed by the refund sanctioning authority”.
Mr. Jinav Ghatalia and Mr. Onil Shivadikar appeared on behalf of the appellant and respondent respectively.
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