Commissioner of Service Tax Vs Konark Exim Pvt. Ltd. (Delhi High Court)
Delhi High Court held that in terms of section 35L of the Central Excise Act, 1944 when issues of determining taxability or valuation are involved, the appeal would lie to the Supreme Court. Accordingly, appeals are disposed of.
Facts- These appeals arise out of the impugned judgment dated 3rd July, 2023 passed by Customs Excise and Service Tax Appellate Tribunal. The issue involved in all the appeals is as to whether the amount paid by the respondents to overseas companies situated in Dubai and shown as “commission” in the shipping documents in relation to export of readymade garments by the respondents is liable to be taxed under “business auxiliary service”, as defined under section 65(19) of the Finance Act, 1994.
Conclusion- Co-ordinate Bench of this Court in ‘Commissioner of CGST And Central Excise Delhi South v. M/s Spicejet Ltd.’ held that in view of Sections 35G and 35L of the Central Excise Act, 1944 which applies in respect of Service Tax, whenever issues of determining taxability are involved, the appeal would lie to the Supreme Court.
A Division Bench of this Court in the judgement of Commissioner of Service Tax v. Delhi Gymkhana Club Ltd. [2009 (16) STR 129 (Del)], clarified that any issue with regard to the determination of any question in relation to valuation for purpose of assessment, when decided by CESTAT shall be appealed to the Supreme Court.
