2013 (11) TMI 1767 - SC - Service Tax

Summary

Issues Involved:
1. Legality of the suspension order.
2. Compliance with the Tribunal's directions.
3. Judicial review of administrative decisions.
4. Validity of reliance on file notings.
5. Application of the doctrine of res judicata.

Summary:

1. Legality of the Suspension Order:
The Respondent, an Indian Revenue Service officer, was suspended on 28.12.1999 due to pending criminal cases investigated by the CBI. The suspension was periodically reviewed and extended by the disciplinary authority u/s Rule 10 of the Central Civil Services (Classification, Control and Appeal) Rules, 1965. The Tribunal quashed the suspension order on 1.6.2012, and this decision was upheld by the High Court on 17.9.2012.

2. Compliance with the Tribunal's Directions:
The Tribunal's order dated 16.12.2011 directed the Appellants to reconsider the suspension, taking into account various factors, including the quashing of the chargesheet and the stage of the criminal trial. Despite this, the Appellants continued the suspension through orders dated 12.1.2012 and 3.2.2012, which were found to be non-compliant with the Tribunal's directions.

3. Judicial Review of Administrative Decisions:
The Supreme Court reiterated that the scope of judicial review in suspension cases is limited. Suspension is an administrative measure, not a punishment, and courts should not function as appellate authorities over such decisions unless they are arbitrary, mala fide, or without prima facie evidence.

4. Validity of Reliance on File Notings:
The Tribunal erred in relying on file notings, which are not considered decisions of the government unless they are sanctioned and acted upon in accordance with Articles 77(2) and 166(2) of the Constitution. Notings are internal opinions and do not constitute executable orders.

5. Application of the Doctrine of Res Judicata:
The Tribunal's order dated 1.6.2012 attained finality as it was not challenged by the Appellants. Consequently, any subsequent order of suspension without challenging the Tribunal's decision was deemed null and void, invoking the doctrine of res judicata. The Appellants' actions were also found to be in contempt of court and arbitrary.

Conclusion:
The Supreme Court dismissed the appeal, holding that the Appellants acted in contravention of the Tribunal's final order and the statutory rules. The continuation of the Respondent's suspension was not justified, and the appeal lacked merit.