Service tax liability left to departmental determination after writ petitioner was directed to pursue the pending reply and hearing.

Writ relief was declined on the service tax dispute, and the petitioner was directed to pursue the reply already filed before the competent authority. The authority was to afford an opportunity of hearing and then consider liability and, if necessary, quantification of the demand. The Court did not decide the merits of taxability, and all contentions were expressly left open for departmental determination.

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Issues: Whether the writ petitioner should be relegated to pursue the departmental remedy before the competent authority on the question of service tax liability.

Analysis: The dispute related to proceedings issued by the service tax authorities and the petitioner's contention that its activities did not attract service tax. The Court did not enter a final adjudication on the merits of taxability. Instead, it directed the petitioner to pursue the reply already submitted before the competent authority, with an opportunity of hearing and further consideration of liability and quantification if necessary. All contentions were expressly left open.

Conclusion: The petitioner was relegated to the competent authority, and the question of service tax liability was left for departmental determination.

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