Why different time limits for filing appeals under Service Tax and Central Excise?
IN terms of Section 35 of the Central Excise Act, 1944, an appeal shall be filed before the Commissioner (Appeals) within sixty days from the date of communication of the order appealed against. This time limit may be extended by another thirty days if sufficient cause is shown for delay in filing the appeal.
In contrast, Section 85(3) of the Finance Act, 1994 provides that an appeal shall be filed before the Commissioner (Appeals) within three months from the date of communication of the order appealed against, which can be extended by another three months if sufficient cause is shown for delay in filing the appeal.
It is not known why there should be different time periods for filing appeals in respect of Central Excise and Service Tax cases.
As we entered the era of allowing cross utilization of credit on goods and services through CENVAT Credit Rules, which will become more seamless once GST takes off, there seems to be a lot of confusion with regard to appeals filed in cases relating to the demand/recovery of credit on inputs/ input services.
While some appeals are being filed as “service tax appeals” under Finance Act, 1994 even by manufacturers with regard to disputes related to credit eligibility on input services, (please see ) there may be instances where appeals are filed as “excise appeals” under the Central Excise Act, 1944 by service providers in disputes regarding eligibility of credit on inputs or capital goods.
When the time limit in respect of appeals to the CESTAT is the same irrespective of the case originating from excise or service tax domain, one fails to understand the logic behind maintaining different time limits for filing of appeals before the Commissioner (Appeals) under the two legislations.
However, there is certainly a positive take away from this mix up of time limits as cited in the above example. If you are a manufacturer and by a stroke of misfortune if you miss the deadline of two month period (three months after extension) in filing an appeal before Commissioner (Appeals) in respect of dispute on eligibility of CENVAT Credit on services, there is no reason to worry, file it is as a service tax appeal.