2012 (8) TMI 605 - HC - Service Tax

Whether the activities carried on by the assessee as Del Credere agents falls within the category of clearing and forwarding agent Held that - Question falls squarely within the exception carved out 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

Summary

Issues:
1. Whether the activities carried on by the assessee as Del Credere agents fall within the category of clearing and forwarding agent?

Analysis:
The case involved an appeal by the Revenue against a Tribunal order that held the assessee, engaged in the business of clearing and forwarding agents, not liable to pay service tax. The assessee contended that their activities did not fall under the purview of Clearing and Forwarding Agent based on a judgment by CESTAT. The Joint Commissioner confirmed the service tax, but the Commissioner of Central Excise allowed the assessee's appeal, leading to the Revenue's appeal to the Tribunal. The Tribunal dismissed the appeal following a previous judgment. The main question for consideration was whether the assessee's activities as Del Credere agents fell within the category of clearing and forwarding agents.

The High Court noted that the question raised fell within the exception under Section 35G, which states that the High Court has no jurisdiction to adjudicate on issues related to the rate of duty of excise or the value of goods for assessment. Citing a previous case, the High Court held that the appeal should lie to the Apex Court, which has exclusive jurisdiction to decide such questions. Consequently, the High Court rejected the appeal as not maintainable, allowing the Revenue to approach the Apex Court. The High Court also directed the registry to return the certified copies of the orders to the Department for filing an appeal.

In conclusion, the High Court dismissed the Revenue's appeal challenging the Tribunal's order, emphasizing the exclusive jurisdiction of the Apex Court in deciding questions related to excise duty rates or goods' value for assessment. The judgment highlighted the limitations on the High Court's jurisdiction in such matters and granted the Revenue the option to appeal to the Apex Court for further consideration.