Writ jurisdiction and statutory appeal: exemption dispute over service tax demand required factual scrutiny, so merits were not entertained.

A writ challenge to a service tax demand was declined where the assessee claimed exemption under a notification but produced no supporting material before the assessing authority. The exemption claim required factual scrutiny of documents, which was better suited to the statutory appellate forum. Because an efficacious appeal was available, the High Court did not entertain the merits in writ jurisdiction and left the assessee to pursue the appellate remedy.

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Issues: Whether the writ petition challenging the service tax demand was maintainable in view of the statutory appellate remedy, where the assessee claimed exemption and sought adjudication of the dispute in writ jurisdiction.

Analysis: The impugned demand was raised under the service tax provisions after issuance of notice and opportunity of hearing. The assessee contended that the services were exempt under a notification, but no supporting material was produced before the assessing authority. The exemption claim required examination of facts and documents and, in the circumstances of the case, the proper forum for such scrutiny was the appellate authority. Since an efficacious statutory appeal was available, the writ court declined to entertain the merits of the exemption dispute.

Conclusion: The writ petition was not entertained on merits and the assessee was left to pursue the statutory appeal.

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