2012 (8) TMI 559 - HC - Service Tax

Consulting Engineer Service Held that - Dispute regarding classification falls within the phrase rate of duty and therefore, this Court has no jurisdiction to go into the same - appeal is rejected as not maintainable

Summary

Issues:
1. Whether the services provided by the company fall under the category of "Consulting Engineer Service" for the purpose of service tax liability.
2. Jurisdiction of the High Court to decide on the classification of services under the Central Excise Act, 1944.

Analysis:

Issue 1:
The appeal was filed challenging the Tribunal's decision that the services provided by the company, including technical assistance and design engineering, constitute "Consulting Engineer Service." The substantial questions of law raised included whether the received technical assistance falls within the taxable service category defined under the Finance Act, 1994. The dispute primarily revolved around the classification of the company's activities as falling under the services of a "Consulting Engineer." The appeal was admitted to address these questions of law and determine the liability of a foreign company for service tax on such activities.

Issue 2:
The appeal was made under Section 35G of the Central Excise Act, 1944, which limits the jurisdiction of the High Court to decide on matters related to the rate of duty or the value of goods for assessment purposes. The High Court concluded that the dispute regarding the classification of services under the "rate of duty" phrase, and therefore, the court lacked jurisdiction to rule on the matter. The court held that only the Apex Court under Section 35L of the Act has the authority to decide such questions of law. Consequently, the appeal was rejected as not maintainable, with the revenue granted the liberty to appeal to the Apex Court. The High Court directed the registry to return the certified copies of the orders for the revenue to pursue an appeal at the Apex Court level.