2019 (4) TMI 1009 - HC - Service Tax

Export of services or not - the effective use, consumption and enjoyment of service has taken place on the soil territory of India - consideration for the same has been received from outside India - scope of accrual of benefit - HELD THAT - Learned counsel for the petitioner submitted that he has instructions to withdraw the appeal with liberty to the appellant to file an appeal before the Apex Court - petition dismissed as withdrawn.

Summary

Issues:
1. Applicability of Section 35G of the Central Excise Act, 1944 in challenging the order passed by the Customs, Central Excise & Services Tax Appellate Tribunal.
2. Preliminary objection regarding the maintainability of the appeal before the High Court based on classification/taxability issues.
3. Consideration of withdrawing the appeal and liberty to file an appeal before the Supreme Court.

Analysis:
1. The appellant approached the High Court under Section 35G of the Central Excise Act, 1944, challenging the order passed by the Customs, Central Excise & Services Tax Appellate Tribunal. The appellant raised substantial questions of law related to the export of service based on the place of consumption, benefit accrual, and consideration received in Indian Rupees for services provided to Indian buyers. The respondent raised a preliminary objection on the maintainability of the appeal, citing that classification/taxability issues fall under the jurisdiction of the Supreme Court as per Section 35L(2) of the Act.

2. The High Court considered Section 35L of the Act, which outlines the appeal process to the Supreme Court. The section specifies the scenarios under which an appeal can lie before the Supreme Court, including judgments delivered by the High Court under Section 35G, references made by the Appellate Tribunal, and cases related to the determination of questions concerning excise duty or goods' taxability. In light of the respondent's objection and the provisions of Section 35L, the appellant's counsel expressed willingness to withdraw the appeal with the liberty to file an appeal before the Supreme Court.

3. Consequently, the High Court dismissed the appeal as withdrawn, allowing the appellant the opportunity to pursue remedies as per the law. The judgment highlights the procedural aspect of appellate jurisdiction concerning tax matters and the hierarchy of courts for adjudicating disputes related to excise duty and service tax. The decision underscores the importance of adhering to the statutory provisions governing appeals in tax-related cases to ensure proper adjudication and resolution of legal issues.