2010 (8) TMI 30 - SC - Central Excise

Limitation- Power to condone delay beyond 30 days. Submission that Commissioner (Appeals) having power to condone delay on showing of sufficient cause and that provisions of section 5 of Limitation Act, 1963 applicable. Held that- Section 35 of the Act, prescribing period of limitation, being a special law would override general law. Also relied upon the case of Singh Enterprises vs. Commissioner of Central Excise, Jamshedpur and Ors. 2008 -TMI - 2805 - SUPREME COURT OF INDIA, holding that Appellate Authority has no power to condone delay beyond period of 30 days. Impugned order upheld.

Summary

Issues:
Challenge to judgment on condonation of delay under Section 35 of Central Excise Act.

Analysis:
The appeal before the Supreme Court challenged a judgment of the Gauhati High Court regarding the power to condone delay under Section 35 of the Central Excise Act. The appellant had filed an appeal before the Commissioner (Appeals) challenging an order passed by the Deputy Commissioner, Central Excise, Gauhati. The Commissioner (Appeals) rejected the application for condonation of delay, leading to further appeals. The learned Single Judge of the Gauhati High Court held that there were insufficient grounds for condonation of delay, even if such power existed beyond 30 days. The Division Bench of the High Court upheld this decision, stating that the Commissioner (Appeals) did not have jurisdiction to condone delay beyond 30 days after the initial 60-day period as per the Act.

The appellant argued that the language of Section 35 implied the power to condone delay on showing sufficient cause, invoking the application of Section 5 of the Act. However, the Supreme Court disagreed with this interpretation. Referring to a previous decision in Singh Enterprises vs. Commissioner of Central Excise, the Court highlighted that the proviso to Sub-Section (1) of Section 35 clearly limits the power to condone delay to a maximum of 30 days. The Court emphasized that the legislative intent was to allow condonation only up to 30 days and not beyond. Therefore, the Court concluded that the Commissioner (Appeals) did not have the authority to condone delay beyond the specified period.

In light of the above analysis, the Supreme Court dismissed the appeal, holding that the judgment and order of the High Court were in accordance with the law. The Court affirmed that the decision in Singh Enterprises case applied to the present situation, and there was no error in the High Court's judgment. Consequently, the appeal was deemed to have no merit and was dismissed.