Statutory appellate remedy prevails where service tax exemption claim needs factual adjudication and writ jurisdiction is avoided.

A writ petition challenging a service tax demand was not entertained because an efficacious statutory appeal was available under the Finance Act. The exemption claim raised by the petitioner required factual and legal adjudication, which had not been properly examined in writ proceedings, and the petitioner had not substantiated that claim with supporting material before the original authority. The HC held that such a dispute should be considered by the appellate authority, and the petitioner was relegated to the statutory appeal remedy with liberty to seek exclusion of time spent in writ proceedings for limitation purposes.

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Issues: Whether the writ petition was maintainable in view of the statutory appellate remedy against the order confirming service tax liability and whether the exemption claim required examination by the appellate authority.

Analysis: The impugned order was passed under the Finance Act and an appeal lay under the statutory appellate provisions. The dispute whether the services rendered by the petitioner were exempt from service tax involved a factual and legal adjudication that was not undertaken in the writ proceedings. The Court found that such a controversy ought to be examined by the appellate authority, especially when the petitioner had not substantiated the exemption claim with supporting material before the original authority.

Conclusion: The writ petition was not entertained and the petitioner was relegated to the statutory appeal remedy.

Final Conclusion: The challenge to the service tax demand was left to be pursued before the appellate forum, and the writ proceeding came to an end with liberty to seek exclusion of time spent in these proceedings for limitation purposes.

Ratio Decidendi: Where an efficacious statutory appeal is available, and the dispute turns on an exemption claim requiring factual adjudication, writ jurisdiction is ordinarily not invoked.

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