2025 (2) TMI 263 - AT - Service Tax

Rejection of rebate claim - export of services - whether the Tribunal has the authority to entertain appeals relating to rebate claims or if such matters should be directed to the Revisionary Authority under Section 35EE of the Central Excise Act 1944? - HELD THAT - In view of the first proviso to Section 35B of the Central Excise Act 1944 where an order passed by the Commissioner (Appeals) under Section 35A the Tribunal shall not have jurisdiction to decide any appeal relating to rebate of duty of excise on goods exported against the Order-in-Appeal passed by the Commissioner (Appeals) under Section 35B(1)(b). In respect of rebate claims filed appeals have to be filed before the Revisionary Authority Government of India under Section 35EE of the Central Excise Act 1944. In terms of provisions of Section 86 of the Finance Act 1994 where an order relating to service which is exported which has been passed under Section 85 and the matter relates to grant of rebate of service tax on input services or rebate of duty paid on inputs appeals are required to be filed before the Revisionary Authority Government of India in accordance with the provisions of Section 35EE of the Central Excise Act 1994. The proviso of Section 35B of the Central Excise Act 1944 clearly speaks of exclusion of jurisdiction of this Tribunal in relation to matters relating to rebate of duty. As all the impugned orders passed by the Commissioner (Appeals) relates to rebate claims the Tribunal lacks jurisdiction in these matters. These appeals are not maintainable before this Tribunal as the remedy lies under Section 35EE of the Central Excise Act 1944 by way of filing revision applications to Central Government. Conclusion - In view of the first proviso to Section 35B of the Central Excise Act 1944 where an order passed by the Commissioner (Appeals) under Section 35A the Tribunal shall not have jurisdiction to decide any appeal relating to rebate of duty of excise on goods exported against the Order-in-Appeal passed by the Commissioner (Appeals) under Section 35B(1)(b). These appeals are dismissed for want of jurisdiction.

Summary

ISSUES PRESENTED and CONSIDERED

The primary issue considered in this judgment is the jurisdiction of the Tribunal to adjudicate disputes arising from rebate claims filed under Notification No. 39/2012-CE(NT) dated 20.06.2012 concerning service tax paid on the export of services. The specific legal question is whether the Tribunal has the authority to entertain appeals relating to rebate claims or if such matters should be directed to the Revisionary Authority under Section 35EE of the Central Excise Act, 1944.

ISSUE-WISE DETAILED ANALYSIS

Relevant Legal Framework and Precedents

The legal framework revolves around Notification No. 39/2012-CE(NT) and the provisions of Sections 35B and 35EE of the Central Excise Act, 1944, along with Section 86 of the Finance Act, 1994. The notification provides for rebate claims on service tax paid on input services used in exported services. The relevant statutory provisions outline the appellate jurisdiction and the role of the Revisionary Authority in rebate matters.

Court's Interpretation and Reasoning

The Tribunal examined the statutory provisions and concluded that the jurisdiction to entertain appeals related to rebate claims lies with the Revisionary Authority under Section 35EE of the Central Excise Act, 1944. The Tribunal referred to the amendments made by the Finance Act, 2015, which explicitly ousted its jurisdiction in such matters.

Key Evidence and Findings

The appeals involved rebate claims filed by the appellant for service tax paid on input services used in exported services. The appellant argued that they met all conditions under the relevant notification and that the denial of rebate claims was erroneous. The Tribunal focused on the jurisdictional issue and did not delve into the merits of the rebate claims themselves.

Application of Law to Facts

The Tribunal applied the legal provisions to determine that it lacked jurisdiction over the appeals concerning rebate claims. It emphasized the legislative intent to channel such matters through the Revisionary Authority, as indicated by the statutory amendments and the specific exclusion of Tribunal jurisdiction in rebate cases.

Treatment of Competing Arguments

The appellant contended that the rebate claims were wrongly denied and that the Tribunal should adjudicate the matter. However, the Tribunal prioritized the jurisdictional question and concluded that the appeals were not maintainable before it. The Tribunal acknowledged the appellant's arguments but highlighted the statutory framework that precluded its involvement.

Conclusions

The Tribunal concluded that it lacked jurisdiction to entertain the appeals related to rebate claims. Consequently, the appeals were dismissed, and the appellant was directed to seek remedy through the Revisionary Authority under Section 35EE of the Central Excise Act, 1944.

SIGNIFICANT HOLDINGS

Core Principles Established

The Tribunal reinforced the principle that rebate claims related to service tax on exported services are outside its jurisdiction, as per the statutory framework established by the Central Excise Act, 1944, and the Finance Act, 1994.

Final Determinations on Each Issue

The Tribunal determined that all appeals related to rebate claims were not maintainable before it due to the lack of jurisdiction. The appropriate forum for such appeals is the Revisionary Authority under Section 35EE of the Central Excise Act, 1944.

Verbatim Quotes of Crucial Legal Reasoning

"In view of the first proviso to Section 35B of the Central Excise Act, 1944 where an order passed by the Commissioner (Appeals) under Section 35A, the Tribunal shall not have jurisdiction to decide any appeal relating to rebate of duty of excise on goods exported against the Order-in-Appeal passed by the Commissioner (Appeals) under Section 35B(1)(b)."

"As all the impugned orders passed by the Commissioner (Appeals) relates to rebate claims, the Tribunal lacks jurisdiction in these matters. These appeals are not maintainable before this Tribunal as the remedy lies under Section 35EE of the Central Excise Act, 1944 by way of filing revision applications to Central Government."