2006 (9) TMI 485 - AT - Central Excise

Summary

Issues involved:
The issues involved in the judgment are the recovery of Service Tax amount, the discretion of the Tribunal in admitting appeals below a certain value, and the comparative study of provisions of Sections 35B and 35C of the Central Excise Act, 1944 with Sections 83 and 86 of the Finance Act, 1994.

Recovery of Service Tax Amount:
The Commissioner of Central Excise and Customs ordered the recovery of a Service Tax amount from the appellants and crediting it to the Consumer Welfare Fund u/s 11-AB in terms of Section 11B of the Central Excise Act, 1944, setting aside the Order of the Deputy Commissioner who had ordered a refund to the assessee.

Discretion of Tribunal in Admitting Appeals:
The issue raised was whether the Tribunal should exercise discretion in admitting the appeal since the value was less than Rs. 50,000. The liability to pay Service Tax on services received by goods transport operators was discussed, which was shifted to service recipients by a specific notification.

Comparative Study of Provisions:
The comparative study of Sections 35B and 35C of the Central Excise Act, 1944 with Sections 83 and 86 of the Finance Act, 1994 was conducted. It was noted that the Appellate Tribunal acquires powers to hear appeals and make Orders under Section 35C of the Central Excise Act, 1944 and not under Section 35B. The discretion vested with the Tribunal under the second proviso to Section 35B(1) of the Central Excise Act, 1944 was found not to be available under Section 86(7) of the Finance Act, 1994. The judgment concluded that an appeal could lie before the Appellate Tribunal against Orders passed under certain sections of the Service Tax Rules 1994, irrespective of valuation.