2011 (4) TMI 1096 - HC - Service Tax

Whether Tribunal was right in holding that the activity carried on by the assessee comes within the category of Scientific and Technical Consultancy Services - dispute regarding classification falls within the phrase rate of duty and therefore this Court has no jurisdiction to go into the same. It is only the Apex Court under Section 35L of the Act which is competent to decide the aforesaid question of law appeal is rejected as not maintainable reserving liberty to the revenue to prefer an appeal to the Apex Court

Summary

Issues:
Classification of services as 'Consulting Engineer' or 'Scientific and Technical Consultancy'; Jurisdiction of High Court under Section 35G of the Central Excise Act, 1944.

Analysis:

The High Court judgment pertains to an appeal challenging a Tribunal order that classified the activity of the assessee as 'Scientific and Technical Consultancy Services.' The substantial questions of law considered were whether the technical services provided by the respondent constitute 'Consulting Engineer' services and if the services fall under 'Scientific and Technical Consultancy.' The core issue revolved around the classification of the activity of a foreign company, determining if it fits within the 'Consulting Engineer' or 'Scientific and Technical Consultancy' services, raising the question of liability for service tax.

The appeal was filed under Section 35G of the Central Excise Act, 1944, which allows appeals to the High Court from orders of the Appellate Tribunal, excluding those related to duty rates or goods valuation. The High Court held that the dispute over classification falls within the realm of 'rate of duty,' indicating that the Court lacked jurisdiction to adjudicate on the matter. The judgment clarified that only the Apex Court, under Section 35L of the Act, possesses the authority to decide such questions of law. Consequently, the High Court deemed the appeal not maintainable, granting the revenue the liberty to appeal to the Apex Court if desired.

In conclusion, the High Court directed the registry to return the certified copies of the orders to facilitate the revenue's potential appeal to the Apex Court, as the jurisdiction to decide the classification issue rested with the higher authority. The judgment emphasized the delineation of powers between the High Court and the Apex Court concerning matters related to the classification of services for tax purposes under the Central Excise Act, 1944.