2014 (11) TMI 970 - HC - Service Tax

Maintainability of appeal - refund claim or levy of service tax - Export of services - marketing of foreign Principal s products in India - Rule 3(1)(iii) of the Export of Service Rules 2005 - Held that - The precise issue which had arisen was whether the assessee was engaged in export of services and therefore whether service tax was payable. Reliance was placed by the respondent-assessee on the Rules to make the claim for refund. Prayer for consequential refund could only be granted in case the service rendered was an export and therefore no service tax was payable and leviable on the said service in terms of the Rules and the circulars/notifications. In these circumstances we do not think that the appeal is maintainable before the High Court and the same is accordingly directed to be returned. The appellant if aggrieved and wants can take appropriate steps as per law. - Decided against Revenue.

Summary

Issues:
1. Jurisdiction of High Court under Section 83 of the Finance Act, 1994 read with Section 35G of the Central Excise Act, 1944.
2. Interpretation of the scope of appeal under Section 35L of the Central Excise Act, 1944 before the Supreme Court.
3. Determination of taxability of services under the Finance Act, 1994.
4. Refund claim for services under the Export of Services Rule, 2005.
5. Dispute regarding the levy of service tax on exported services.

Analysis:

1. The judgment discusses the jurisdiction of the High Court under Section 83 of the Finance Act, 1994 read with Section 35G of the Central Excise Act, 1944. It highlights that appeals under this provision can be made to the High Court only when the order determines issues other than questions related to the rate of duty or value of goods/services. If the order involves questions related to duty/tax rates or value of goods/services, the appeal lies before the Supreme Court under Section 35L of the Central Excise Act, 1944. The Court emphasizes the importance of determining the correct appellate forum based on the nature of the issues involved in the order.

2. The judgment delves into the interpretation of the scope of appeal under Section 35L of the Central Excise Act, 1944 before the Supreme Court. It explains that the determination of any question having a relation to the rate of duty/tax includes the determination of taxability or exigibility of goods/services to tax. The Court clarifies that in service tax adjudication, the chargeability of services to tax can be challenged before the Supreme Court under Section 35L. The judgment underscores the significance of understanding the scope of appellate jurisdiction based on the nature of the tax-related questions involved.

3. The judgment addresses the determination of taxability of services under the Finance Act, 1994. It discusses a case where a claim for refund of service tax was dismissed on the grounds that the services rendered were covered under the Export of Services Rule, 2005. The Court examines the nature of the services provided and the applicability of service tax, emphasizing the importance of correctly assessing the tax liability concerning the export of services.

4. The judgment scrutinizes a refund claim for services under the Export of Services Rule, 2005. It narrates a scenario where a claim for refund was rejected initially but later upheld by the Commissioner of Central Excise (Appeals) and subsequently by the CESTAT. The Court evaluates the grounds on which the refund claim was based and the subsequent decisions made by the appellate authorities, focusing on the correct application of tax laws and rules governing service tax refunds.

5. The judgment discusses a dispute regarding the levy of service tax on exported services. It outlines the arguments presented by the appellant regarding the nature of services rendered and the applicability of service tax. The Court examines the contentions made by the respondent regarding the export of services and the rules supporting their claim for a refund of service tax. The judgment concludes by directing the appeal to be returned due to lack of maintainability before the High Court, emphasizing the need for adherence to the correct legal procedures in tax-related matters.