M/S Madhyamik Shiksha Parishad vs. Customs Excise And Service Tax Appellate And Another

Facts

The appellant, M/s Madhyamik Shiksha Parishad, filed an appeal before the High Court against an order dated 02.08.2022 passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad. The CESTAT had rejected the appellant's appeal against an order dated 12.01.2021 passed by the Commissioner (Appeals), CGST and Central Excise, Allahabad. The sole reason for the CESTAT's rejection was the appellant's non-compliance with the mandatory pre-deposit requirement under Section 35-F of the Central Excise Act, 1944, to maintain the statutory appeal. The appellant is a statutory board constituted by the Government of U.P. The appeal before the High Court was filed with a delay of 147 days, which was condoned subject to payment of costs.

Held

The High Court condoned the delay of 147 days in filing the appeal, subject to the appellant paying a cost of Rs. 10,000/- to the High Court Legal Services Committee by 15.06.2023. The Court noted that the right of appeal before the Tribunal was conditional upon making the statutory pre-deposit. However, in view of the appellant's status as a statutory board and the fair statement made by the revenue's counsel, the Court decided not to delve into the legal issues. The Court disposed of the appeal by observing that if the appellant paid the costs and deposited the pre-deposit amount to maintain its appeal on or before 30.06.2023, the impugned CESTAT order dated 02.08.2022 would stand set aside, and the appeal would revive before the Tribunal to be heard and decided on merits. No issue was expressly left undecided.

Key Issues

1. Whether the High Court should condone the delay in filing the appeal, given the appellant's status as a statutory board and the circumstances leading to the delay. (Mixed question of fact and law) 2. Whether the appeal before the CESTAT should be revived on merits, considering the appellant's prayer for time to make the pre-deposit and the revenue's stance. (Question of law) Contentions of the Appellant: The appellant, a statutory board, prayed for time to make the pre-deposit amount to maintain its appeal before the Tribunal. The appellant also sought condonation of delay in filing the present appeal before the High Court. Contentions of the Respondent (Revenue): The revenue, through its counsel, fairly stated that if the appellant were to make the pre-deposit within one month from the date of the order, the revenue would have no objection to the impugned order being set aside, allowing the appellant to press its appeal on merits. The revenue did not dispute the conditional nature of the appeal before the Tribunal.