Alternate statutory remedy bars writ relief in service tax dispute over alleged sovereign functions

A writ challenge to service tax on activities claimed as sovereign functions was declined because an efficacious statutory appeal remedy was available. Although the dispute appeared prima facie covered by earlier tribunal decisions favourable to the petitioner, the HC held that the finer legal issues should first be examined by the appellate forum. The petitioner was therefore directed to pursue the statutory appeal before CESTAT, Chennai within the time granted, and no merits-based relief was granted in writ jurisdiction.

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Issues: Whether the writ petition should be entertained when an efficacious statutory appeal remedy was available, and whether the petitioner should be relegated to the appellate forum.

Analysis: The petition raised a challenge to the levy of service tax on activities said to be performed as part of sovereign functions. The Court noted that the dispute appeared prima facie covered by earlier tribunal decisions in favour of the petitioner, but declined to grant straightaway relief in writ jurisdiction because an alternate statutory remedy was available. The Court held that the finer aspects of law should be examined in the statutory appellate forum.

Conclusion: The writ petition was not entertained on merits and the petitioner was relegated to file a statutory appeal before the CESTAT, Chennai within the time granted.

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