Recently, Hon’ble Punjab & Haryana High Court in the case of Barnala Builders & Property Consultants v.  Deputy Commissioner of Central Excise & Service Tax, (2013) 40 taxmann.com 369 (Punjab & Haryana), has appraised that an order rejecting an assessee’s application under Section 106(2) of The Finance Act pertaining to VCES is appealable.

The Hon’ble High Court highlighted the fact that Section 106(2) after incorporation in the Finance Act, 1994 forms a part and parcel of the Act and hence all the other provisions of the Act shall be equally applicable to it. Therefore, an appeal by an assessee under Section 86 is acceptable. Further, circular 170/5/2013 dated 08-08-2013 rejecting the right of an assessee is considered incorrect as per the cited judgment.