In Brief
The Union of India challenged a High Court order that had quashed show cause notices demanding service tax from transport operators. The operators disputed whether their services fell under 'cargo handling service' (higher tax) or 'goods transport agency' (lower tax). The Supreme Court held that the High Court erred in entertaining the writ petition at the show cause stage, when the statute provided for appellate remedy to the Supreme Court. Classification disputes, involving factual determinations about the nature and scope of services, must proceed through the statutory assessment process rather than be resolved through writ jurisdiction. The appeal was allowed and the case remitted for proper adjudication.
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