Commissioner (Appeals) lacks remand power after amendment, and must decide service tax liability on the material before him.

After the amendment to Section 35A, the Commissioner (Appeals) no longer has power to remand a service tax matter for fresh adjudication, but may make further inquiry before deciding the appeal. Where relevant documents on the nature of services were not before the appellate authority, he was required to determine the classification and tax liability himself rather than send the matter back. The Tribunal also noted the relevance of the partial reverse charge notifications for manpower supply and works contract services. The remand order was therefore held unsustainable and set aside, with the dispute left for reconsideration on the material produced before the Commissioner (Appeals).

---

---

Issues: Whether the Commissioner (Appeals) could remand the service tax matter for fresh adjudication and whether, in the absence of relevant documents, he was required to decide the classification and tax liability himself.

Analysis: The Tribunal noted that, after the amendment to Section 35A, the power of remand had been taken away from the Commissioner (Appeals). It further observed that Section 35A(3) empowered the Commissioner (Appeals) to make further inquiry as necessary before passing an order. Since the documents relevant to the nature of service availed by the appellant were not placed before the appellate authority, the proper course was for him to exercise his appellate powers and determine the tax liability rather than remit the matter back to the adjudicating authority. The Tribunal also referred to the relevant notifications governing partial reverse charge in respect of manpower supply and works contract services.

Conclusion: The remand ordered by the Commissioner (Appeals) was unsustainable and was set aside. The matter was sent back to the Commissioner (Appeals) to decide the issue as the adjudicating authority on the material to be produced before him.

Final Conclusion: The appellant obtained relief against the appellate remand order, but the dispute on service tax liability was kept alive for reconsideration before the Commissioner (Appeals).

Ratio Decidendi: After the statutory amendment withdrawing remand power, the Commissioner (Appeals) must decide the appeal himself and may conduct further inquiry, but cannot remand the matter for fresh adjudication.

---