In Brief
The Union of India appealed against a High Court order quashing service tax show cause notices. The notices proposed to classify the respondents' transport services as "cargo handling service" rather than "goods transport agency." The High Court had entertained a writ petition at the show cause stage and quashed the notices, finding them contrary to CBEC circulars. The Supreme Court held that writ jurisdiction should not be exercised prematurely at the show cause stage in tax classification disputes where statutory remedies exist. Classification must be determined by the competent authority during adjudication based on case facts. The Court allowed the appeal and remitted the matter for proper adjudication while granting the respondents four weeks to file responses.
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