2012 (10) TMI 500 - HC - Service Tax

Business auxiliary service v/s business support service - Held that - This Court has no jurisdiction to entertain this appeal under section 35G of the Central Excise Act, 1944 as decided in C.C.E., MANGALORE Versus MANGALORE REFINERIES & PETROCHEMICALS LTD. 2010 (9) TMI 756 - KARNATAKA HIGH COURT as an order passed by the Appellate Tribunal relating to the determination of any question having relation to the rate of duty of excise or to the value of goods for the purposes assessment lies to the Supreme Court under Section 35L(b) the Act and not to the High Court under Section 35(G). Thus need to be adjudicated by the Apex Court under section 35L.

Summary

Issues:
- Determination of whether the activity falls under 'business auxiliary service' or 'business support service.'
- Jurisdiction of the High Court to entertain the appeal under section 35G of the Central Excise Act, 1944.

Analysis:
1. The High Court was presented with an appeal challenging a Tribunal order regarding the classification of the assessee's activity for the payment of service tax. The Tribunal had ruled that the activity did not qualify as 'business auxiliary service' to avoid service tax.

2. The appellant argued that their business should be categorized as 'business support service,' exempt from service tax before 2006. The central issue before the Court was to determine whether the assessee's operations fell under 'business auxiliary service' or 'business support service.'

3. The Court highlighted the jurisdictional aspect, citing section 35G of the Central Excise Act, 1944. It noted that the question at hand related to excise duty assessment, falling under the purview of the Apex Court as per section 35L. Citing a previous case, the Court emphasized that such matters must be adjudicated by the Apex Court, rendering the current appeal not maintainable in the High Court.

4. Consequently, the High Court declared the appeal as not maintainable under section 35G of the Central Excise Act, 1944. The Court directed the Revenue to pursue an appeal under section 35L of the Act before the Apex Court for further consideration. Additionally, the office was instructed to return the certified copies of the orders to the Department for the appeal process.