The main legal point established in the judgment is the necessity for the appellant to approach the Supreme Court by filing an appeal in cases where the issue relates to taxability and valuation, in accordance with Section 35G(1) read with Section 35L(1)(b) of the Central Excise Act, 1944.

JUDGMENT :

G.S. KULKARNI, J.

1. This appeal filed by the revenue under section 35G of the Central Excise Act, 1944 arises from the order dated 14 January, 2020 passed by the Customs, Excise and Service Tax Appellate Tribunal, Mumbai disposing of Service Tax Appeal No. 86128 of 2014 filed by the respondent whereby the respondent’s appeal has been allowed.

2. The appellant has urged that the following substantial question of law for determination of this Court in the present proceedings:

“(a) Whether in the facts and circumstances of the case, the Tribunal was right in holding that the assessee/respondent was not rendering Collection Agency Services in relation to Securitization deals originated prior to February, 2006?

(b) Whether in the facts and circumstances of the case, the Tribunal was right in holding that imposition of detriment is without authority of law merely because in view of typing mistake, Section 73(4) is invoked instead of 73(1) of the Finance Act, 1994?

(c) Whether in the facts and circumstances of the case, the Tribunal was right in holding that taxing consideration earned from Liquidity Facility is in breach of the exemption afforded to interest?

(d) Whether in the facts and circumstances of the case, the Tribunal was right in holding that beneficiary of the facility is not the “Special Purpose Vehicle” but the assessee/respondent themselves and therefore, there is no service rendered to another person?”

3. Learned counsel for the respondent has raised a preliminary objection to the maintainability of this Appeal before this Court on the ground of remedy available in terms of Section 83 of the Finance Act, 1944 read with Section 35G of the Central Excise Act, 1944 (for short “CE Act”).

4. The question which arises for consideration necessarily in regard to the taxability and valuation of Collection Agency Services rendered by the respondent during the period October, 2007 to March, 2012 in realtion to assignment/securitization deals (ABS & MBS) originated prior to February, 2006. In such context, our attention has been drawn to the show cause notice dated 23 July, 2013 issued by the Department of Revenue to the respondent. The objection raised on behalf of the respondent is to the effect that when the question arises for determination in relation to the rate of duty of excise or to the value of goods for purposes of assessment, as excluded from the provisions of Section 35G, would be a question which would be required to be determined by the Supreme Court in Appeal as provided for in Section 35L(2) of the CE Act.

5. In the context of the objection as raised on behalf of the respondent, it would be appropriate to note all the three provisions:

“83. Application of certain provisions of Act 1 of 1944

The provisions of the following sections of the Central Excise Act, 1944 (1 of 1944), as in force from time to time, shall apply so far as may be, in relation to service tax as they apply in relation to a duty of excise (sub-section (2A) of Section 5A, sub-section (2) of Section 9A, 9AA, 9B, 9C, 9D, 9E, 11B, 11BB, 11C, 12, 12A, 12B, 12C, 12D, 14, 15, 15A, 15B, 31, 32, 32A to 32P (both inclusive), 33A, 34A, 35EE, 35F, 35FF to 35-O (both inclusive), 35Q, 35R, 36, 36A, 36B, 37A, 37B, 37C, 37D, 38A and 40.”

Section 35G - 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, amoung 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.

Section 35L - Appeal to the Supreme Court

(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.

(ii) on a reference made under section 35G by the Appellate Tribunal before the 1st day of July, 2003.

(iii) on a r