By TIOL News Service

CHENNAI, NOV 05, 2013: ORDER was passed by the original authority on March 27, 2012. Section 85 of Finance Act, 1994, was amended reducing time limit for filing appeals before the Commissioner (Appeals) from three months to two months. This provision came into force on 28.05.2012. Petitioner filed appeal after the amendment came into force on 28.05.2012 but within the condonable period of further three months. Authority rejected the appeal as barred by limitation applying the amended provision which came into force on 28.05.2012.

The Court held that there is no dispute that prior to 28.05.2012 three months time was given to file appeal against the order passed by the statutory authority. The Court further observed that prior to 28.05.2012 grace time of three months after the expiry of initial three months was also available to file appeal along with an application to condone the delay. However the position has undergone a sea change after 28.05.2012 thereby reducing the time to file appeal from three months to two months and the grace period from three months to one month.

The Court observed that Commissioner (Appeals) proceeded as if the date on which the appeal was preferred should be taken as the crucial date since appeal was preferred after 28.05.2012 when amendment to Section 85 of Finance Act, 1994, came into force. Commissioner (Appeals) rejected the appeal as time barred by applying the amended provision of Section 85. The court held that the materials available on record showed that order was passed by the original authority on 27.03.2012 and that the amendment came into force on 28.05.2012. Therefore the Court held that the petitioner is justified in its contention that the appeal should have been taken up on file in accordance with the regulations in force prior to 28.05.2012. The Court further held that the Commissioner (Appeals) is not justified in rejecting the appeal on the ground of limitation. Accordingly the High Court set aside the order and directed the Commissioner (Appeals) to register the appeal and decide the case on merits and as per law.

(See 2013-TIOL-863-HC-MAD-ST)