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2011 (4) TMI 1146 - HC - Service TaxWhether the assessee is liable to pay service tax - question relates to payment of rate of duty/tax Held that - question falls squarely within the exception carved cut in Section 35G, an order relating, among other things, to the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment , and the High Court has no jurisdiction to adjudicate the said issue, appeal is rejected as not maintainable
Issues:
1. Whether the assessee is liable to pay service tax under the agreements. 2. Jurisdiction of the High Court to adjudicate on the issue of rate of duty/tax. Analysis: 1. The case involved an appeal by the revenue against a Tribunal order that held the assessee not liable to pay service tax for royalty charges paid for technology transfer. The assessee contended that the payment was for the grant of rights to use technical information and intellectual property for manufacturing patented goods, not a service. The Assistant Commissioner initially dropped proceedings, but the Commissioner later levied service tax, interest, and penalty. The Tribunal, in line with previous judgments, ruled in favor of the assessee, prompting the revenue's appeal. The High Court considered whether the assessee was liable to pay service tax under the agreements. 2. The High Court determined that the question of whether the assessee was liable to pay service tax fell within the exception under Section 35G, which pertains to the rate of duty/tax determination. Citing a previous case, the Court clarified that it lacked jurisdiction to decide on such issues, as the appeal should be directed to the Apex Court under Section 35L of the Central Excise Act, which holds exclusive jurisdiction over rate of duty/tax matters. Consequently, the High Court rejected the appeal as not maintainable, allowing the Revenue to approach the Apex Court. The Court directed the High Court registry to return certified copies of the orders to the Department for the appeal process.
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