2014 (4) TMI 845 - HC - Service Tax

Fees for filing appeal before the CESTAT relating to refund/rebate of Service Tax, Customs and Central Excise matters - Whether on the facts and in the circumstances of the case the CESTAT, New Delhi has gravely erred in interpreting the provisions of Section 86 (6) of the Finance Act, 1994 and holding that no fees is payable in filing appeal before the CESTAT relating to refund/rebate of Service Tax, Customs and Central Excise matter depriving the revenue to collect fee from the parties from all over India with regard to filing of appeals in the matters of refund/rebate of Service Tax, Customs and Central Excise matters - Held that - Section 86 (6) refers to the fee which has to accompany an appeal. The fees are respectively 1000 rupees, 5000 rupees and 10,000 rupees based on the amount of service tax and interest demanded and penalty levied. Where the service tax and interest demand and penalty levied is rupees five lakhs or less, the fee is one thousand rupees; where the service tax and interest demanded and penalty levied is more than five lakhs but does not exceed rupees fifty lakhs, the fee is five thousand rupees; and where the amount of service tax and interest demanded and penalty levied is more than fifty lakhs, the fee is ten thousand rupees. Section 86 (6) does not speak of a refund/rebate. As the Tribunal has correctly held, there is no residuary provision in Section 86 (6) - In the circumstances, there is no error in the interpretation which has been placed by the Tribunal upon the provisions of 86 (6) of the Finance Act, 1994 - Decided against Revenue.

Summary

Issues:
1. Delay condonation application
2. Interpretation of Section 86(6) of the Finance Act, 1994
3. Payment of fees for filing appeals before the CESTAT

Delay Condonation Application:
The appeal was filed along with a delay condonation application, which was supported by a sufficient cause as shown in the affidavit. The court, therefore, condoned the delay in filing the appeal, disposing of the delay condonation application.

Interpretation of Section 86(6) of the Finance Act, 1994:
The appeal by the revenue challenged the decision of the Customs, Excise & Service Tax Tribunal regarding the interpretation of Section 86(6) of the Finance Act, 1994. The questions of law raised by the appeal related to whether the CESTAT had erred in holding that no fees are payable in filing appeals before the CESTAT concerning refund/rebate of Service Tax, Customs, and Central Excise matters. Section 86(6) mandates a fee to accompany an appeal based on the amount of service tax, interest demanded, and penalty levied. The Tribunal correctly held that there is no residuary provision in Section 86(6) for refund/rebate cases. The earlier provision required a fee of two hundred rupees for every appeal, which is different from the current arrangement.

Payment of Fees for Filing Appeals Before the CESTAT:
The appeal contended that the CESTAT had gravely erred in interpreting Section 86(6) and depriving the revenue of collecting fees for appeals related to refund/rebate matters. However, the court found no error in the Tribunal's interpretation of Section 86(6) of the Finance Act, 1994. It was concluded that the appeal did not raise any substantial question of law, leading to its dismissal with no order as to costs.

In summary, the High Court dismissed the appeal by the revenue challenging the Tribunal's decision on the payment of fees for filing appeals before the CESTAT regarding refund/rebate matters. The court upheld the Tribunal's interpretation of Section 86(6) of the Finance Act, 1994, emphasizing the absence of a provision for fees in refund/rebate cases.