2014 (11) TMI 932 - HC - Service Tax

Maintainability of appeal - Export services - Held that - Court does not agree with the submission of the counsel for the appellant-Revenue that the issue raised in the order-in-original and in the appellate orders did not relate to the question of levy of duty or rate of duty/tax. The precise issue, which had arisen was whether the assessee was engaged in export of services and, therefore, whether service tax was payable. In these circumstances, we do not think this appeal is maintainable before the High Court and the same is accordingly directed to be returned. - Decided against Revenue.

Summary

Issues Involved:
1. Jurisdiction of appellate forums under the Central Excise Act, 1944 and the Finance Act, 1994.
2. Appealability of orders related to rate of duty/tax or value of goods/services.
3. Interpretation of taxability of services under the Finance Act, 1994.
4. Application of Export of Services Rule, 2005 in determining service tax liability.

Jurisdiction of Appellate Forums:
The judgment discusses the jurisdiction of appellate forums under the Central Excise Act, 1944 and the Finance Act, 1994. It clarifies that appeals against CESTAT decisions can be filed before the jurisdictional High Court under Section 35G or before the Supreme Court under Section 35L of the Central Excise Act, 1944. However, the Supreme Court and the High Court do not have concurrent appellate jurisdiction. The judgment highlights the distinction between issues relating to the rate of duty/tax or value of goods/services, which fall under Section 35L for Supreme Court appeals, and other issues that can be appealed to the High Court under Section 35G.

Taxability of Services under the Finance Act, 1994:
The judgment delves into the interpretation of taxability of services under the Finance Act, 1994. It explains that the determination of taxability or exigibility of goods to tax falls under the purview of Section 83 of the Finance Act, 1994 read with Section 35L of the Central Excise Act, 1944. Specifically, in the context of service tax adjudication, the question of chargeability of services to tax under relevant provisions, notifications, or exemptions can be challenged before the Supreme Court. The judgment emphasizes that the issue of taxability of services is crucial in determining the appropriate appellate forum.

Application of Export of Services Rule, 2005:
The judgment analyzes the application of the Export of Services Rule, 2005 in determining service tax liability. It mentions a case where the respondent-assessee claimed that their services fell under the Export of Services Rule, 2005, and thus, they were not liable to pay service tax. The respondent relied on specific circulars to support their contention. The judgment ultimately concludes that the issue at hand revolved around whether the assessee was engaged in the export of services, impacting the service tax liability. Consequently, the appeal was deemed not maintainable before the High Court, and the appellant was advised to pursue appropriate legal steps if aggrieved.

In conclusion, the judgment provides a detailed analysis of the jurisdiction of appellate forums, the interpretation of taxability of services under the Finance Act, 1994, and the application of the Export of Services Rule, 2005 in a specific case. It underscores the importance of correctly determining taxability issues to ascertain the appropriate appellate forum for challenging service tax adjudications.