Court dismisses writ petition challenging service tax notice outside India for not exhausting alternative remedies. Respondent to decide within 8 weeks.

The court dismissed the writ petition challenging a show cause notice for service tax on educational cess outside India due to the petitioner not exhausting alternative remedies. The petitioner was directed to respond to the notice within four weeks, with the respondent required to decide within eight weeks thereafter. The court emphasized the importance of utilizing available remedies before resorting to writ petitions, without expressing an opinion on the merits of the case.

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Issues involved:
Challenge to show cause notice for service tax on educational cess outside India, maintainability of writ petition without exhausting alternative remedy.

Analysis:
The writ petition challenges a show cause notice by the Commissioner of Central Excise regarding service tax on educational cess for a specific period. The main issue is whether service tax can be imposed for services rendered outside India. Reference is made to a previous judgment where it was held that the liability of the petitioner should be calculated from a certain date. The petitioner argues that they should only be liable for service taxes from a later date in relation to services outside Indian territory. However, the respondent contends that the previous judgment does not apply to the current case as the services were rendered outside India but received within Indian territory. The respondent also raises a preliminary objection on the maintainability of the writ petition, stating that the petitioner should have responded to the show cause notice instead of approaching the court directly.

The court addresses the issue of maintainability first. It notes that the petitioner did not respond to the show cause notice but directly filed the writ petition. The court emphasizes that when an alternative and effective remedy is available, the writ petition cannot be entertained. The petitioner is advised to provide an explanation to the show cause notice within four weeks, and if submitted, the respondent must decide on the matter within eight weeks thereafter. The court dismisses the writ petition without expressing any opinion on its merits, granting the petitioner the opportunity to present their explanation to the notice.

In conclusion, the court rules that the writ petition challenging the show cause notice for service tax on educational cess outside India is not maintainable due to the availability of an alternative remedy. The petitioner is directed to submit their explanation to the notice within a specified period, after which the respondent will make a decision in accordance with the law.

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