COMMISSIONER Vs LARSEN AND TOUBRO LTD

Service Tax – The controversy is whether the SEZ unit and DTA unit are separate legal entities, which has no proximate relation to the determination of the rate of service tax or the value of services rendered by the respondent-assessee – Admissibility of appeal in High Court - HELD - Whether the SEZ unit and the DTA unit are one unit or not, is primarily a question of fact as regards the character of the assessee and not the nature of services rendered by it - The question which this court is called upon to answer is to examine the provisions of the SEZ Act and give a finding one way or the other as to whether the SEZ unit and the DTA unit are one legal entity or separate legal entities. Since such question has not direct relation with the determination of rate of service tax or value of services, it is well within the bounds of jurisdiction of this court to adjudicate the matter - The contention that the appeals are not maintainable, therefore, does not merit acceptance - It is, accordingly, held that against the impugned order passed by the Tribunal, appeal would lie before the High Court under section 35G of the CEA, 1944 – In favour of revenue – the case is yet to be decided on merit