Service tax liability to be adjudicated by competent authority, with refund preserved if no tax is found due

The writ petition concerned service tax liability and whether the petitioner should first be examined by the competent authority. The court did not determine liability itself; instead, it directed adjudication by the statutory authority after considering the petitioner's replies and hearing the petitioner. The order also preserved the petitioner's claim for refund of any amount paid under protest if the authority concludes that no service tax is payable. All contentions were left open for decision in the adjudicatory process.

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Issues: Whether the petitioner should be relegated to the competent authority for adjudication of its liability to service tax, and whether any amount already paid under protest would be refundable if the petitioner is found not liable.

Analysis: The writ petition did not result in a substantive determination of the petitioner's service tax liability. The matter was directed to be considered by the competent authority on the petitioner's replies and after hearing the petitioner. The order also preserved the petitioner's right to have the amount already paid under protest refunded if, in the course of adjudication, the authority concludes that no service tax liability exists. All contentions were left open.

Outcome: The petitioner was relegated to the statutory authority for adjudication of service tax liability, with a direction that any amount paid under protest be refunded if the petitioner is held not liable.

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