2020 (10) TMI 731 - HC - Service Tax

Maintainability of appeal - appropriate forum - Classification of Services - Business Auxiliary Services or Erection, Commissioning or Installation? - sales commission received by the appellant from M/s. Electrosteel Castings Ltd., M/s. Lanco Industries Ltd., and M/s. Pacific Pipe Systems Pvt. Ltd. - HELD THAT - Having regard to the subject-matter and the issue decided by the Tribunal, the appeal would lie to the Supreme Court in terms of Section 35L of the Act 1944. Without entering into the merits of the matter, this appeal is disposed off on the ground that the same is not maintainable before this Court. It would be open for the Revenue to avail appropriate legal remedy before appropriate forum in accordance with law.

Summary

Issues:
1. Appeal by Revenue against Customs Tribunal order.
2. Dispute over service tax for Business Auxiliary Service.
3. Applicability of ECIS category for activities by M/s. Shree Hindustan Fabricators.

Analysis:
1. The appeal before the High Court was filed by the Revenue challenging the Customs Tribunal's order that partly allowed the appeal of the respondent. The Tribunal upheld the demand of service tax under Business Auxiliary Service related to sales commission received by the appellant from specific clients. The Tribunal identified the charge for levying service tax under this category, confirming the demand, interest, and penalty. However, the demand under ECIS category was set aside.

2. The appellant, dissatisfied with the Tribunal's order, approached the High Court under relevant sections of the Finance Act and Central Excise Act. The Revenue proposed a question of law questioning the Tribunal's finding that the activities of M/s. Shree Hindustan Fabricators did not fall under the ECIS category. Considering the subject matter and issue decided by the Tribunal, the High Court noted that the appeal should lie before the Supreme Court as per the Act.

3. The High Court, without delving into the merits of the case, disposed of the appeal on the ground of non-maintainability before them. The Court directed the Revenue to seek appropriate legal remedy before the suitable forum as per the law. This judgment highlights the procedural aspect of jurisdiction and forum selection rather than delving into the substantive tax issues raised in the appeal.