2015 (4) TMI 703 - HC - Service Tax

Denial of rebate claim - Validity of Tribunal s order - Whether the CESTAT is right in law in holding that an appeal relating to the rebate claim is not maintainable before it - Held that - Following decision of Commissioner of Service Tax-I Versus Ambe International 2015 (3) TMI 435 - BOMBAY HIGH COURT - Tribunal was in error in dismissing the Revenue s Appeal. The Revenue s Appeal was maintainable before the Tribunal. It shall now be registered and proceeded with in accordance with law - matter remanded back - Decided in favour of Revenue.

Summary

Issues:
1. Challenge to order passed by Customs, Excise, and Service Tax Appellate Tribunal.
2. Maintainability of appeal regarding rebate claim before CESTAT.

Analysis:
The judgment pertains to an appeal by the Revenue challenging an order passed by the Customs, Excise, and Service Tax Appellate Tribunal, West Zonal Bench at Mumbai. The Respondent, engaged in banking and financial services, filed a rebate claim for a specific period. The Tribunal initially rejected the claim, stating that the provisions of the Central Excise Act, 1944 would apply to Service Tax claims, and the appeal could only be challenged before the Central Government, rendering the Revenue's appeal before the Tribunal as not maintainable. The substantial question of law raised was whether the CESTAT was correct in holding that an appeal related to the rebate claim was not maintainable before it.

The court noted that the Revenue had duly served the appeal documents on the Assessee, who was absent despite being served. The court was referred to a previous order where a similar issue was addressed, and it was held that the Revenue's appeal before the Tribunal was maintainable. Relying on this precedent, the court held that the Tribunal erred in dismissing the Revenue's appeal and that it was indeed maintainable. The court directed the appeal to be registered and proceeded with according to the law, leaving all contentions on the merits of the appeal open for further consideration.

In conclusion, the judgment clarifies the maintainability of the Revenue's appeal before the Tribunal regarding a rebate claim, overturning the Tribunal's decision and directing the appeal to proceed in accordance with the law. The court emphasized the importance of following established precedents in determining the jurisdiction of the Tribunal in such matters, ensuring a fair and consistent application of legal principles.