TaxTMI 
TaxTMI 
2026 (8) TMI 730
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.... 3. The learned counsel appearing for the respondent, at the threshold, raised a preliminary objection, so far as the maintainability of the appeal under Section 35G of the Central Excise Act. The learned counsel for the respondent contended that the bare perusal of the entire contention put forth by the appellant in the appeal and on perusal of the substantial question of law framed by the appellant itself would show that the appellant has principally challenging the classification of the taxable services rendered by the respondent. 4. The learned counsel for the respondent relied upon a decision rendered by this Bench in CEA No.10 of 2026, decided on 20.04.2026, whereby under somewhat similar circumstances, the appeal was held to be not maintainable and that, if at all, if the Department intends to prefer an appeal, it has to be under Section 35L of the Central Excise Act before the Hon'ble Supreme Court rather than 35G of the Central Excise Act. 5. The learned counsel for the respondent further relied upon a recent decision of the Hon'ble Supreme Court dated 27.05.2026 in the case of Alupro Building System Private limited v. Commissioner of Central Excise, Bangalore-II [20....
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....peal 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." 10. And it would also be appropriate at this juncture to take note of the provision of Section 35L(2) read with 35L(1)(b). For ready reference, Section 35L(1) and (2) is being reproduced herein under: Section 35L(1): An appeal shall lie to the Supreme Court from- (a) any judgment of the High Court delivered- (i) in an appeal made under section 35G; or (ii) on a reference made under section 35G by the Appellate Tribunal before the 1st day of July, 2003; or (iii) on a reference made under section 35H, in any case which, on its own motion or on an oral application made by or on behalf of the party aggrieved, immediately after the passing of the judgment, the High Court certifies to be a fit one for appeal to the Supreme Court; or (b) any order passed by the Appellate Tribunal relati....
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....not they are covered by an exemption notification: and whether the value of Service for the purposes of assessment should be enhanced or reduced having regard to certain matters that the said Act provides for. Questions relating to the rate of duty and to the value of Service for purposes of assessment are questions that squarely fall within the meaning of the said expression. A dispute as to the classification of Service and as to whether or not they are covered by an exemption notification relates directly and proximately to the rate of duty applicable thereto for purposes of assessment. Whether the value of Service for purposes of assessment is required to be increased or decreased is a question that relates directly and proximately to the value of Service for purposes of assessment. Determination of rate of duty in relation to any Service include determination of a question whether any Service or not, whether the process if any undertaken in the service centre amounts to taxable Service or not, and if the Service rendered during that process are excisable goods or not would fall within the meaning of the expression 'determination of the rate of duty of excise or the value o....
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....hether 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 covered by an exemption notification relates directly and proximately to the rate of duty applicable thereto for purposes of assessment. Whether the value of goods for purposes of assessment is required to be increased or decreased is a question that relates directly and proximately to the value of goods for purposes of assessment. The statutory definition of the said expression indicates that it has to be read to limit its application to cases where, for the purposes of assess....
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....t, respectively are pari materia to Sections 35G and 35L of the Act, 1944. The Court referred to the decision in Navin Chemicals (supra) wherein the expression "relation to" in the bracketed portion of Section 130 of the Customs Act was stated to indicate that the direct and proximate relationship of the question before the court to the "rate of duty of excise or to the value of goods" for the purpose of the assessment. The relevant observations read thus:- "11. Upon a conjoint reading of the aforesaid provisions, it could thus be seen that an appeal shall lie to the High Court against every order passed in appeal by the Appellate Tribunal, if the High Court is satisfied that the case involves a substantial question of law. The only exception carved out is that an appeal shall lie before this Court and shall not lie before the High Court against the order relating, amongst other things, to the determination of any question having relation to the rate of duty of customs or to the value of goods for the purposes of assessment. 12. It could thus clearly be seen that, only if any question having relation to the rate of duty is involved in an appeal or if it relates to....
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....equence of collective reading of Sections 35G and 35L, respectively. As a result, such a clarificatory amendment would have retrospective effect. 44. It is trite law that an amendment could be characterized as clarificatory of existing law when the provision it seeks to amend was subject to more than one interpretation. In other words, the provision prior to the amendment was not being interpreted in harmony with the statutory intent without the amendment being read into it. 45. The phrase "shall include" denotes inclusive and expansive definition that clarifies the scope of an existing expression, rather than one that adds a new category to it. The use of the phrase signifies that the legislature was not introducing excisability as a new category of questions falling within the rate of duty, it was clarifying that excisability always fell within that expression, and any doubt to the contrary was unwarranted. 46. It appears that the amendment was introduced to clarify the position of law, with the aim of removing existing doubts and correcting judicial error, thereby rendering it declaratory in nature. By inserting sub-section (2), the legislature put an ....