2010 (2) TMI 429 - AT - Service Tax

Cenvat Credit - The dispute involved was limited to the entitlement of the appellant to Cenvat credit of duty paid on zinc used in galvanizing iron and steel items falling under Chapters 72 and 73 of the First Schedule to the Central Excise Tariff Act 1985. It is submitted that the original authority had denied Cenvat credit on the ground that their claim was not substantiated with requisite duty paying documents and reliable evidence. Matter was remanded to original authority. Condonation of delay - Commissioner (Appeals) rejected appeal of assessee on ground that appeal was filed two months beyond three months time prescribed for filing appeal. Held that - assessee was prevented by sufficient cause from filing appeal thus delay can be condoned.

Summary

Issues: Appeal filed beyond prescribed time limit; Condonation of delay; Entitlement to Cenvat credit; Denial of Cenvat credit by original authority; Possession of requisite documents; Delay in filing appeal due to illness and financial constraints.

In this case, the Appellate Tribunal CESTAT, Bangalore, dealt with an appeal filed by M/s. Reliance Galvanising Industries challenging the rejection of their appeal by the Commissioner (Appeals) on the grounds of being filed beyond the prescribed three-month period. The appellant sought condonation of the delay, arguing for the preference of substantive justice over technical considerations. The original authority had demanded service tax, interest, and imposed a penalty equal to the service tax amount. The dispute centered around the appellant's entitlement to Cenvat credit for duty paid on zinc used in galvanizing iron and steel items. The appellant claimed to possess the necessary documents to support their eligibility for the credit. The appellant requested a remand to the adjudicating authority for a fresh decision on the merits. The delay in filing the appeal was attributed to the need to organize funds for paying the demanded service tax and the illness of the individual handling Central Excise matters. The Tribunal noted the provision under section 85(3) of the Finance Act, 1994, which allows for the condonation of delay if sufficient cause is established. The Tribunal found that the delay in filing the appeal should be condoned as the appellant had a valid reason for missing the deadline. Consequently, the appeal was allowed, and the matter was remanded to the original authority for a fresh decision adhering to the principles of natural justice.