Service tax chargeability disputes lie to the Supreme Court, not the High Court, under the appellate scheme.

Where the dispute concerns the chargeability of an activity to service tax, the appellate scheme under Section 83 of the Finance Act, 1994 read with Sections 35G and 35L(2) of the Central Excise Act, 1944 places the matter within the Supreme Court's jurisdiction and not the High Court's. A contemporaneous CBEC circular is noted as consistent with that position. The appeal was therefore held not maintainable before the High Court and dismissed.

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Issues: Whether an appeal before the High Court was maintainable where the dispute pertained to the chargeability of the activity to service tax and, consequently, the proper forum of appeal.

Analysis: The appeal raised a question concerning the chargeability of the activity in question to service tax. Where the lis concerns chargeability, the statutory scheme under Section 83 of the Finance Act, 1994 read with Sections 35G and 35L(2) of the Central Excise Act, 1944 places the matter within the appellate jurisdiction of the Supreme Court rather than the High Court. The contemporaneous circular of the Central Board of Excise and Customs also clarifies that such appeals do not lie before the High Court.

Conclusion: The appeal was not maintainable before the High Court and was dismissed.

Ratio Decidendi: In disputes concerning the chargeability of an activity to service tax, the appeal lies to the Supreme Court and not to the High Court.

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