Dept has no Right to file Revision Application on Refund of Service Tax on Export Services: CESTAT [Read Order]

The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the department has no right to file a revision application on refund of service tax on export services.

 The applicant, Mail Order Solutions (I) Ltdhas filed these miscellaneous applications, seeking for recall/ review of order No. A/1854-1865/2015-STD dated 24.06.2015 passed by the Tribunal. The reason for filing these miscellaneous applications is that in terms of sub-section (2A) of Section 86 of the Finance Act, 1994, Revenue has been permitted under the statute to file an appeal before the Tribunal in respect of the order passed by the Commissioner (Appeals).

It was contended by the applicant that it is the assessee alone, who can assail the impugned order passed by the Commissioner (Appeals) in respect of the issues concerning rebate of duty on exportation of goods before the revisionary authority, instead of filing an appeal before the Tribunal.

It was observed that provisions regarding the filing of appeals before the Tribunal are governed under the provisions of Section 86 of the Finance Act, 1994. Sub-section (1) ibid provides for filing of the appeal by an assessee before the Tribunal.

 The first proviso appended to sub-section (1) mandates that in respect of the order passed by the Commissioner of Central Excise (Appeals) under Section 85 ibid, relating to the matter of grant of rebate relating to services which are exported, the order shall be reviewed by the Central Government in terms of Section 35EE of the Central Excise Act, 1994.

“As per sub-section (2A) of section 35EE of the Central Excise Act, 1944,the assessee is only permitted to file the Revision Application before the Central Government in terms of Section 35EE and no such provisions exist for the appeals to be filed by the Revenue.”, the bench of S. K. Mohanty (Judicial) and M. M. Parthiban (Technical) held.

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