No implied review power under service tax appellate scheme; second committee review could not create jurisdiction for appeal.

Section 86 of the Finance Act, 1994 permits a service tax appeal only after the Committee of Commissioners objects to the Commissioner (Appeals)' order and the matter is then considered by the Chief Commissioner. The scheme does not confer any implied power on the Committee to reopen or review a concluded decision not to object, and such review cannot be inferred merely because the statute is silent. Once the Committee accepts the order, that decision attains finality; a second review cannot be used to create jurisdiction for an appeal. An appeal founded on such an unauthorised second review is therefore incompetent.

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Issues: Whether the Committee of Commissioners and the Chief Commissioner had any implied power to undertake a second review of the earlier decision not to object to the Commissioner (Appeals)' order, so as to found a valid appeal under the service tax appellate scheme.

Analysis: The appellate scheme under Section 86 of the Finance Act, 1994 permits an appeal only when the Committee of Commissioners objects to the order and the matter is then independently considered by the jurisdictional Chief Commissioner. The provision contains no express power enabling the Committee to reopen or review a decision already taken, and review cannot be inferred merely because no prohibition is stated. Once the Committee accepts the order, its decision attains finality and the Chief Commissioner cannot require a second look in order to create jurisdiction for filing an appeal. The second review was therefore without authority of law and the appeal founded on it was incompetent.

Conclusion: The second review was impermissible and the appeal based on it was not maintainable; the finding is in favour of the assessee and against the Revenue.

Ratio Decidendi: A power of review must be expressly conferred by statute, and in the absence of such authority a concluded decision of the review committee cannot be reopened to sustain an appeal.

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