By TIOL News Service

ALLAHABAD, APR 20, 2014: REVENUE is in appeal against the Larger Bench decision of the CESTAT in case of 2013-TIOL-1103-CESTAT-DEL-LB, wherein the Tribunal held that no fees is payable on appeals relating to refund/rebate of Service Tax filed under Section 86(6) of the Finance Act, 1994. Revenue felt that the Larger Bench decision deprived them of collecting fee in relation to appeals filed under Section 86(6) of Finance Act, 1994.
The High Court held that:

Section 86(6) refers to the fee which has to accompany an appeal. The fees are respectively 1000 rupees, 5000 rupees and 10,000 rupees based on “the amount of service tax and interest demanded and penalty” levied. Where the service tax and interest demand and penalty levied is rupees five lakhs or less, the fee is one thousand rupees; where the service tax and interest demanded and penalty levied is more than five lakhs but does not exceed rupees fifty lakhs, the fee is five thousand rupees; and where the amount of service tax and interest demanded and penalty levied is more than fifty lakhs, the fee is ten thousand rupees.

Section 86 (6) does not speak of a refund/rebate. As the Tribunal has correctly held, there is no residuary provision in Section 86 (6).

On the contrary, prior to 1 November 2004 when Section 86 (6) came into force, the earlier provision was as follows:

"(6) An appeal to the appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, except in the case of an appeal referred to in sub-section (2) of sub-section (4), be accompanied by a fee of two hundred rupees."

The earlier provision, therefore, was for the payment of a fee of rupees two hundred in case of every appeal (save for the excepted category). The present provision does not contain an analogous arrangement.

In the circumstances, there is no error in the interpretation which has been placed by the Tribunal upon the provisions of 86 (6) of the Finance Act, 1994.

(See 2014-TIOL-525-HC-ALL-ST)