Section 35G jurisdiction excluded where service classification affects rate of duty; remedy lies only before the Supreme Court.

An appeal under Section 35G was held not maintainable because the substantial question concerned service classification and fell within the statutory exception for questions relating to the rate of duty or the value of goods for assessment. As that subject matter falls within Section 35L, exclusive jurisdiction lies with the Supreme Court and the High Court cannot decide the merits of the revenue appeal. The court therefore rejected the appeal before it, while leaving the revenue free to move the Apex Court.

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Issues: Whether the High Court had jurisdiction under Section 35G to entertain the revenue appeal when the question involved the scope of online information and database access and/or retrieval service and fell within the exception relating to rate of duty or value of goods, thereby attracting Section 35L.

Analysis: The substantial question framed in the appeal concerned the correct interpretation of the statutory service classification. The Court held that the issue fell squarely within the exception carved out in Section 35G, namely matters relating to the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment. Such questions were held to lie within the exclusive jurisdiction of the Apex Court under Section 35L, and therefore the High Court could not adjudicate the appeal on merits.

Conclusion: The appeal was not maintainable before the High Court and had to be rejected, with liberty to the revenue to approach the Apex Court.

Ratio Decidendi: Where the question raised in an appeal under Section 35G is one that relates to the rate of duty or value for assessment, the High Court lacks jurisdiction and the remedy lies exclusively under Section 35L before the Supreme Court.

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