Madras HC restored a time-barred customs appeal due to counsel's indisputable illness and existence of a substantive dispute.
Madras HC Restores Time-Barred Customs Appeal
The Madras High Court has restored a customs appeal filed beyond the statutory 90-day period under Section 130(1) of the Customs Act, 1962, recognizing the counsel’s undisputed illness as sufficient cause under Section 5 of the Limitation Act, 1963. The appeal challenged the classification of goods attracting substantial duty enhancement.
The Court emphasized that the dispute involved a substantial question of law and fact, particularly goods classification under the Customs Tariff Act. The medical records of the counsel were accepted as authentic, and no prejudice was demonstrated by the Department. The restoration was deemed necessary to prevent failure of justice, particularly where the delay was attributable to force majeure beyond the appellant’s control.
This ruling reaffirms the flexibility under the Limitation Act in customs litigation. Practitioners should ensure timely filing but may rely on bona fide illness supported by medical documentation to seek condonation. However, the threshold of ‘substantive dispute’ and absence of prejudice remains critical for success under Section 5.