Avail 20% discount on updated CA lectures for Dec 21 .Use Code RESULT20 !! Call : 088803-20003

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Pleading, a ground of appeal

LinkedIn


Court :
Hon’ble CESTAT, Delhi

Brief :
The Hon’ble CESTAT, Delhi held that Rule 5 of the Excise Appeals Rules has no application in the instant case because a contention that the Appellant was not provider of service but was recipient of service is not 'a piece of evidence', it is a 'pleading, a ground of appeal' and goes to root of jurisdiction. Hence, such an additional ground is admissible and ought to be entertained and the Appellant must be called upon to substantiate this plea. Hence, the matter was remanded back for afresh adjudication.

Citation :
Astron Polymers (P.) Ltd.... Appellant Vs. Commissioner of Central Excise, Delhi-IV.... Respondent [(2014) 52 taxmann.com 372 (New Delhi - CESTAT)]

Dear Professional Colleague,

'Pleading, a ground of appeal' which appears to root of jurisdiction can be raised for first time before Commissioner (Appeals)

We are sharing with you an important judgment of Hon’ble CESTAT, Delhi, in the case of Astron Polymers (P.) Ltd. Vs. Commissioner of Central Excise, Delhi-IV [(2014) 52 taxmann.com 372 (New Delhi - CESTAT)] on following issue:

Issue:

Whether a 'pleading, a ground of appeal' can be raised for the first time before Commissioner (Appeals)?

Facts & background:

In the instant case, the Department demanded Service tax for the periods 2005-06 to 2007-08 on Rs. 14, 40,000/- paid by Astron Polymers (P.) Ltd. (“the Appellant”) towards factory rent to one of its director. The Appellant denied liability to Service tax citing that levy was unconstitutional. However, the Appellant failed to submit that it was not a service provider, but was merely recipient of services from one of its directors.

The Department confirmed the demand along with interest and penalty. Against the Adjudication Order, the Appellant preferred an appeal before the Commissioner (Appeals) specifically contending that rent was being charged by Directors of the Appellant individually and not by the Appellant. The Commissioner (Appeals), relying upon Rule 5 of Central Excise (Appeals) Rules, 2001 (“the Excise Appeal Rules”), rejected the Appellant’s contention on the ground that this was a new ground raised for the first time in the appeal and was not raised either in reply to the Show Cause Notice or during course of the Adjudication proceedings. Being aggrieved, the Appellant preferred an appeal before the Hon’ble CESTAT, Delhi.

Held:

The Hon’ble CESTAT, Delhi held that Rule 5 of the Excise Appeals Rules has no application in the instant case because a contention that the Appellant was not provider of service but was recipient of service is not 'a piece of evidence', it is a 'pleading, a ground of appeal' and goes to root of jurisdiction. Hence, such an additional ground is admissible and ought to be entertained and the Appellant must be called upon to substantiate this plea. Hence, the matter was remanded back for afresh adjudication.

Hope the information will assist you in your Professional endeavors. In case of any query/ information, please do not hesitate to write back to us.

Thanks & Best Regards,

Bimal Jain
FCA, FCS, LLB, B.Com (Hons)    
                                                             
Delhi:
Flat No. 34B, Ground Floor, Pocket - 1,
Mayur Vihar, Phase - I,
Delhi – 110091, India
 
Chandigarh:
H.No. 908, Sector 12-A,         
Panchkula, Haryana – 134115
 
Kolkata:
Ist Floor, 10 R G Kar Road
Shyambazar, Kolkata – 700 004
 
Email: bimaljain@hotmail.com
Web: www.a2ztaxcorp.com

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

Readers are advised to consult the professional for understanding applicability of this newsletter in the respective scenarios. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. No part of this document should be distributed or copied (except for personal, non-commercial use) without our written permission.

 

Bimal Jain
on 13 January 2015
Published in Service Tax
Views : 2139
Report Abuse

LinkedIn







Trending Tags