TaxTMI 
TaxTMI 
2026 (4) TMI 1593
X X X X Extracts X X X X
X X X X Extracts X X X X
....ll within the definition of Information Technology Software Service (ITSS) under Section 65(105) (zzzze) of the Finance Act, 1994. 4. The question of law which the learned counsel for the appellant is trying to raise is whether the nature of transaction carried out by the respondent would amount to a sale of goods or a service rendered under the Finance Act, 1994 under the aforesaid section. It would be relevant, at this juncture, to take note of the relevant section i.e., Section 35G (1) of the Central Excise Act, 1944, which is reproduced hereunder: Appeal to High Court: (1) An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal on or after the 1st day of July, 2003 (not being an order relating among other things, to the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment), if the High Court is satisfied that the case involves a substantial question of law. Along with said section, it also relevant to read Section 35L of the aforesaid Act, more particularly sub-Section (2) to Section 35L. For ready reference, the provision to Section 35L is also ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....'rate' is often used in the sense of a standard or measure. 'Rate' generally is an impost, usually for current or recurrent expenditure, spread over a district or other local area and is distinct from an amount payable for work done upon or in respect of particular premises. 'Rate' is defined by Webster to be the price or amount stated or fixed for anything. The word 'rate' includes any toll, due, rent, rate or charge. It means the scale or amount of any other charges. The word 'rate' is used with reference both to a percentage or proportion of taxes, and to a valuation of property. 'Rate' is used in an Act declaring that the Legislative Assembly shall provide by law for a uniform and equal rate of taxation and assessment, applies to the percentage of fixation, as used in connection with 'taxation' and to the valuation of the property, as used in connection with 'assessment'. It is a valuation of every man's estate or setting down how everyone shall pay, or be charged with, to any tax. By the use of the expression 'rate' a relation between the taxable income and the tax charged is intended, but the relation....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ovisions of section 35g and 35L redundant. Then there is no provision in the Finance Act, 1994 for determination of the aforesaid disputes. That was not the intendment of the Parliament. Therefore, the argument that the rate of tax means only the rate at which tax is payable or a fraction is unsustainable. 36. Broadly the following disputes do not fall within the jurisdiction of High Court under Section 35(g) of the Act: (a) Dispute relating to the service tax payable on any service /taxable service. (b) The value of the taxable service for the purposes of assessment (c) A dispute as to the classification of services. (d) Whether those services are covered by an exemption notification or not. (e) Whether the value of services for the purposes of assessment is required to be increased or decreased. (f) The question of whether any services are taxable services or not (g) Whether an activity is a service rendering activity or not, so as to attract levy of service tax. (h) Whether a particular services fall within which heading, sub-heading of Section 65(105) of the Service Act 1994 which defines "taxable ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion having a relation to the rate of duty or to the value of goods for the purposes of assessment and the Explanation thereto provides a definition of it for the purposes of this sub-section. The Explanation says that the expression includes the determination of a question relating to the rate of duty; to the valuation of goods for purposes of assessment; to the classification of goods under the Tariff and whether or not they are covered by an exemption notification; and whether the value of goods for purposes of assessment should be enhanced or reduced having regard to certain matters that the said Act provides for. Although this Explanation expressly confines the definition of the said expression to sub-section (5) of Section 129D, it is proper that the said expression used in the other parts of the said Act should be interpreted similarly. The statutory definition accords with the meaning we have given to the said expression above. Questions relating to the rate of duty and to the value of goods for purposes of assessment are questions that squarely fall within the meaning of the said expression. A dispute as to the classification of goods and as to whether or not they are cover....