Commissioner (Appeals) remand power in service tax upheld for verification under the Finance Act.

Commissioner (Appeals) has power to remand a service tax matter for verification where the appellate power under Section 85(4) of the Finance Act, 1994 authorises him to pass such orders as he thinks fit. The accompanying procedural provision in Section 85(5) does not curtail that substantive authority, and the wording differs from Section 35A(3) of the Central Excise Act, 1944. The effect is that remand is available in appropriate service tax proceedings, and the revenue appeal fails.

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Issues: Whether the Commissioner (Appeals) has power to remand a service tax matter to the adjudicating authority for verification.

Analysis: The appellate power under Section 85(4) of the Finance Act, 1994 is worded differently from Section 35A(3) of the Central Excise Act, 1944. The former authorises the Commissioner (Appeals) to pass such orders as he thinks fit, and the accompanying procedural provision in Section 85(5) does not curtail that substantive power. On that basis, the power to remand is available in appropriate service tax for verification purposes.

Conclusion: The Commissioner (Appeals) does have power to remand the matter in service tax proceedings, and the revenue appeal fails.

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