TMI Blog‘SUFFICIENT CAUSE’ TO CONDONE DELAY INCLUDES FINANCIAL DIFFICULTY TO MAKE MANDATORY PRE DEPOSITX X X X Extracts X X X X X X X X Extracts X X X X ..... ‘SUFFICIENT CAUSE’ TO CONDONE DELAY INCLUDES FINANCIAL DIFFICULTY TO MAKE MANDATORY PRE DEPOSIT - By: - Jayaprakash Gopinathan - Goods and Services Tax - GST - Dated:- 28-7-2021 - - To prefer an appeal before Commissioner (Appeals) or before CESTAT, readers are aware that it is mandatory to make pre deposit of 7.5%/ 10% of duty demanded or penalty imposed by the original authority or when the 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st appellate authority uphold the decision of the original authority. The appellate authorities won t accept the appeal memorandum without evidencing payment of mandatory pre deposit as provided under Section 35F of Central Excise Act, 1944 / 129E of Customs Act, 1962 . If the process of submission is by post or courier, defect memo will be issued by the competent authorities directing pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduction of details of mandatory pre deposit made and failure will result in dismissal of the appeal filed. In case if the appellant failed to file the appeal on time, the Commissioner (Appeals) vide Section 128(1) of Customs Act, 1962 and the CESTAT vide Section 129(5) of Customs Act, 1962 are empowered to condone the delay. However if the appellant present application for Condonation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f delay citing difficulty in augmenting funds for making pre deposit prescribed as the reason for delay, the appellate tribunals often refuse to accept it as a sufficient cause to condone the delay and used to dismiss the appeals. The Hon ble High Court of Karnataka in A. DASNIVAS FERNANDO VERSUS THE COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX BANGALORE-III [2020 (12) TMI 921 - KARNATAKA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HIGH COURT] has held that financial difficulty for making predeposit on time is also to be considered as a sufficient cause to condone the delay in filing the appeal. The Hon ble Court vide paras 5 6 of the judgment held as follows:- 5. It is well settled in law that the expression sufficient cause should receive liberal consideration so as to advance the cause of justice and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same should not be used as a penal statute to punish the erring parties.[see Perumon Bhagvathy Devaswom, Perinadu Village Versus Bhargavi Amma (Dead) By LRs Ors. - 2008 (7) TMI 836 - Supreme Court , KATARI SURYANARAYANA ORS. Versus KOPPISETTI SUBBA RAO ORS. - 2009 (4) TMI 904 - Supreme Court and Assistant Commissioner (CT) LTU, Kakinada Ors. Versus M/s. Glaxo Smith Kli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne Consumer Health Care Limited - 2020 (5) TMI 149 - Supreme Court ] 6. In the back drop of afore said well settled principles, the facts of the case in hand may examined. In the application for Condonation of delay, the appellant had stated that on account of the financial difficulty, he could not arrange the amount and the delay had caused. Taking into consideration that the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pression sufficient cause should receive liberal consideration so as to advance the cause of justice, we answer the substantial question of law framed in this appeal in favour of the assessee and against the Revenue. This judgment, it appears, is equally applicable to cases under GST law and the competent appellate authorities will consider financial difficulty in securing fund for making pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e deposit for filing appeals as a sufficient cause for condoning delay in filing appeals instead of forcing assessee to approach higher courts for justice. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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