Department Has No Right To File Revision Application In Case Of Refund Of Service Tax On Export Of Services: CESTAT

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 in case of refund or rebate of service tax on the export of services since no such provision has been made for Revenue to file a revision application.

The bench of S. K. Mohanty (Judicial Member) and M. M. Parthiban (Technical Member) has observed that assessees are 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 department.

The applicant has filed miscellaneous applications seeking recall or review of the order passed by the Tribunal. The reason for filing the miscellaneous applications is that, in terms of Section 86(2A) of the Finance Act, 1994, the department has been permitted under the statute to file an appeal before the Tribunal in respect of the order passed by the Commissioner (Appeals).

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

The Tribunal noted that the provisions regarding the filing of appeals before the Tribunal are governed by Section 86 of the Finance Act, 1994. Sub-section (1) provides for the filing of the appeal by the 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, relating to the matter of grant of rebate relating to services that are exported, the order shall be reviewed by the Central Government in terms of Section 35EE of the Central Excise Act, 1994. Sub-section (2A) provides that against any order of the Commissioner of Central Excise (Appeals), the department can file an appeal before the Tribunal.

Case Title: Commissioner of Service Tax, Mumbai-II Versus Mail Order Solutions (I) Ltd.

Case No.: Service Tax Miscellaneous Application No. 85233 of 2023

Date: 20.04.2023

Counsel For Appellant: Vinod Kumar

Counsel For Respondent: Ishaan Patkar

Click Here To Read The Order