2018 (11) TMI 1213 - AT - Service Tax

Jurisdiction - maintainability of appeal - Rebate/Refund of service tax paid - export of services - rejection on the ground of time limitation - N/N. 41/2012-ST dated 29.06.2012 - Held that - In view of the amendment carried out by Finance Act, 2015 dated 14.05.2015 vide which the jurisdiction to entertain such an appeal has been ousted. In view of the specific amendment in Section 86 of the Finance Act, 1984 vide Finance Act, 2015, the present appeals are not maintainable before this Tribunal and the appeal lies before the Revisionary Authority in accordance with the provisions of Section 35EE of Central Excise Act, 1944. All the appeals are dismissed being not maintainable before this Tribunal.

Summary

Issues:
Appeals against Order-in-Original dismissing refund claims under Notification No. 41/2012-ST dated 29.06.2012 for Service Tax on transport services for export of goods. Jurisdiction of Appellate Tribunal to entertain rebate appeals post-amendment in Finance Act, 2015.

Issue 1: Refund Claims Rejection
The appellants, exporters of silk fabric and cushion covers, filed refund claims for Service Tax paid on transport services under Notification No. 41/2012-ST. The claims were rejected by both authorities citing time limitation as the grounds for denial. The appellants contended that the denial based on limitation was legally unsustainable, lacking proper factual and legal appreciation.

Analysis: The rejection of refund claims based on time limitation was the primary issue in the appeals. The appellants argued against the denial, emphasizing the legal unsustainability of the decision. The rejection was based on the grounds of limitation, which led to the dismissal of the appeals by the Commissioner (A). The dispute revolved around the interpretation and application of the conditions under Notification No. 41/2012-ST for claiming the refund of Service Tax paid on specific services used for facilitating exports.

Issue 2: Jurisdiction of Appellate Tribunal
The Revenue argued that the appeals related to rebate claims under Notification No. 41/2012-ST, which falls under the jurisdiction of the Revisionary Authority as per Section 35EE of the Central Excise Act, 1944. The Revenue contended that the Tribunal lacked jurisdiction to entertain appeals concerning rebate of Service Tax on input services or duty paid on inputs post-amendment in Finance Act, 2015.

Analysis: The jurisdiction of the Appellate Tribunal to entertain appeals related to rebate claims under Notification No. 41/2012-ST was challenged by the Revenue. The argument was based on the amendment in the Finance Act, 2015, which ousted the Tribunal's jurisdiction in such matters. The Tribunal analyzed the specific provisions of Section 86 of the Finance Act, 1984, and concluded that the appeals were not maintainable before the Tribunal post the amendment. The Tribunal held that the appeals should be directed to the Revisionary Authority in accordance with Section 35EE of the Central Excise Act, 1944.

In summary, the judgment addressed the rejection of refund claims based on time limitation and the jurisdictional issue concerning the Appellate Tribunal's authority to entertain rebate appeals post-amendment in the Finance Act, 2015. The Tribunal dismissed the appeals, directing the appellants to approach the Revisionary Authority for further proceedings without raising the objection of limitation, allowing the matters to be decided on merits.