Facts of the Case

The Commissioner of Central GST and Central Excise, Jammu, filed an appeal under Section 35-G of the Central Excise Act, 1944 challenging a CESTAT Chandigarh order dated 08.03.2018 (Appeal No. E/52478/2015) in favour of M/S Cadila Pharmaceuticals Ltd, IGC, Samba. The appeal was filed with a delay of 1,458 to 1,494 days (over four years). The department's stated reason for the delay was that it decided to file the appeal only after the law was reiterated and settled by the Supreme Court in M/s Unicorn Industries v. Union of India, (2020) 3 SCC 492. The same Bench had earlier rejected an identical explanation for a similarly delayed appeal by the same department in CEA No.10/2020.

Issues Involved

  1. Whether the department's explanation -- that it awaited a later Supreme Court ruling before deciding to appeal -- justified condoning a delay of over four years.

Petitioner's Arguments

  • Counsel for the department fairly conceded that the case was identical to CEA No.10/2020, where the same explanation for delay had already been rejected, and that there was no additional or fresh ground to justify condonation here.

Respondent's Arguments

  • Cadila Pharmaceuticals was unrepresented at this hearing.

Court Order / Findings

  • Given the department's own concession that the facts mirrored CEA No.10/2020 (dismissed by the Division Bench on 23.05.2022 for being barred by limitation), the Court held that ruling applied on all fours to this appeal as well, and dismissed the appeal, along with connected applications, as barred by limitation.

Important Clarification

The Court did not examine or decide the underlying excise classification/exemption dispute between the department and Cadila Pharmaceuticals at all -- the appeal failed purely on limitation, without reaching the merits. This is a Central Excise Act, 1944 case; despite "GST" appearing in the department's current designation (Commissioner of Central GST and Central Excise), no GST provision was involved.

Sections Involved

  • Central Excise Act, 1944 – Section 35-G (appeal to High Court)
  • Limitation Act, 1963 – condonation of delay principles

Decision – In Favour of

Respondent (M/S Cadila Pharmaceuticals Ltd) – the department's appeal was dismissed as time-barred, without any decision on the underlying excise dispute.

Case Details

Court: High Court of Jammu & Kashmir and Ladakh at Jammu
Case Number: CEA No. 128/2023, CM No. 6031/2023, CM No. 6033/2023
Coram: Justice Sanjeev Kumar and Justice Mohan Lal
Date of Order: 9 October 2023

Link to Download the Order

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