2014 (11) TMI 1001 - HC - Central Excise

Maintainability of appeal - whether service tax was leviable and payable on the transactions/service provided by the respondent-assessee who had claimed that the services were not taxable being in the nature of exports - Held that - As the issue/question in these appeals relates to levy or exigibility to service tax the present appeals would not be maintainable before the High Court. Accordingly we are not inclined to issue notice on the applications for condonation of delay and the appeals are directed to be returned. - Appeal disposed of.

Summary

Issues:
1. Whether service tax was leviable and payable on the transactions/service provided by the respondent-assessee?
2. Maintainability of the appeals under Section 83 of the Finance Act, 1994 read with Section 35G of the Central Excise Act, 1944.

Analysis:
1. The primary issue in the present appeals is the chargeability of service tax on the services provided by the respondent-assessee. The respondent claimed that the services were not taxable as they were in the nature of exports. The crux of the matter revolves around the determination of whether the services provided are subject to service tax. The court referred to the case of Commissioner of Service Tax Vs. Ernst and Young Pvt. Ltd., where it was established that questions relating to the rate of duty would encompass the levy of tax on a specific service. It was noted that appeals concerning such matters should be filed before the Supreme Court under Section 35L of the Central Excise Act, 1944.

2. The appeals were filed by the Commissioner of Service Tax under Section 83 of the Finance Act, 1994 read with Section 35G of the Central Excise Act, 1944, challenging the order passed by the Customs, Excise and Service Tax Appellate Tribunal. However, the court highlighted that the issue in question pertained to the levy or exigibility to service tax, which falls under the determination of taxability or excisability of goods for assessment purposes. With the insertion of Sub-Section 2 to Section 35L of the Central Excise Act, 1944 by the Finance (No.2) Act, 2014, it was clarified that questions related to the rate of duty would include the determination of taxability. Consequently, the court concluded that the appeals were not maintainable before the High Court and directed the appeals to be returned, advising the appellant to take appropriate legal steps if aggrieved.

In conclusion, the High Court ruled that the appeals were not maintainable before them due to the nature of the issue concerning the levy of service tax, which falls under the determination of taxability as per the relevant legal provisions. The appeals were disposed of, and the appellant was advised to pursue further legal recourse in accordance with the law if desired.