Service tax on demurrage charges fell within the statutory bar to High Court appeal, requiring direct Supreme Court review.

A dispute concerning service tax on demurrage charges was treated as one relating to the rate of duty or the value of goods for assessment, bringing it within the statutory exception to the High Court's appellate jurisdiction under Section 35G. The court noted that such matters fall within the direct appeal route to the Supreme Court under Section 35L. On that basis, the High Court concluded that it lacked jurisdiction to decide the controversy on merits and rejected the appeal as not maintainable.

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Issues: Whether the High Court had jurisdiction to entertain the revenue's appeal when the dispute related to the assessee's liability to service tax on demurrage charges and thus to a question having relation to the rate of duty or value of goods for assessment.

Analysis: The appeal raised a question falling within the exception to the High Court's appellate jurisdiction under Section 35G. A matter concerning the levy of service tax on demurrage charges was treated as one relating to the rate of duty or the value of goods for assessment, for which the statutory scheme provides a direct appeal to the Supreme Court under Section 35L. On that premise, the High Court held that it could not adjudicate the controversy on merits.

Conclusion: The appeal was held not maintainable before the High Court and was rejected for want of jurisdiction.

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