Limitation for service tax appeals is governed by Section 85 of the Finance Act, not the Central Excise Act's shorter period.

An appeal against a service tax order to the Commissioner (Appeals) was governed by Section 85 of the Finance Act, 1994, which allowed filing within three months and, in appropriate cases, condonation of a further three months. The sixty-day limitation in Section 35 of the Central Excise Act, 1944 did not apply to such an appeal. As the appeal had been filed within the period prescribed by Section 85, dismissal on the ground of limitation was incorrect and the assessee was entitled to relief.

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Issues: Whether the appeal before the Commissioner (Appeals) arising from a service tax order was governed by Section 85 of the Finance Act, 1994 or by Section 35 of the Central Excise Act, 1944, and whether the appeal was barred by limitation.

Analysis: The appeal was filed under Section 85 of the Finance Act, 1994, which prescribed a three-month period for filing an appeal before the Commissioner (Appeals), with a further three months available for condonation of delay in appropriate cases. The period of sixty days introduced in Section 35 of the Central Excise Act, 1944 was not applicable to such an appeal. Since the appeal was filed within the period prescribed by Section 85, the dismissal on limitation by applying Section 35 was erroneous.

Conclusion: The appeal was within time under Section 85 of the Finance Act, 1994 and the order treating it as barred by limitation could not be sustained. The relief was therefore in favour of the assessee.

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