Writ petition against service tax demand declined where exemption and extended limitation issues required factual adjudication before tribunal.

The writ challenge to the service tax demand and denial of exemption under Notification No. 12/2003-ST was not entertained because entitlement to the exemption and the applicability of the extended period under the proviso to Section 73(1) of the Finance Act, 1994 involved factual questions requiring evidence. Those issues were held fit for adjudication before the appellate tribunal, and the impugned order was found not to involve any violation of natural justice. The statutory pre-deposit requirement for appeal was treated as mandatory, leaving the petitioner to pursue the appellate remedy.

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Issues: Whether the writ petition challenging the service tax demand and denial of exemption under Notification No. 12/2003-ST should be entertained, or whether the petitioner should be relegated to the appellate remedy before the Tribunal.

Analysis: The dispute turned on factual questions relating to the petitioner's entitlement to the benefit of Notification No. 12/2003-ST and the invocability of the extended period under the proviso to Section 73(1) of the Finance Act, 1994. These issues were found to be matters requiring adjudication on evidence and were held to be appropriately raised before the appellate tribunal. The order impugned was also found not to suffer from any violation of natural justice, and the statutory requirement of pre-deposit for appeal was treated as mandatory.

Conclusion: The writ petition was not entertained and the petitioner was directed to work out the remedy of appeal before the Tribunal.

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