2018 (1) TMI 1697 - HC - Customs

Levy of service tax - import of services - HELD THAT - The learned single Judge by placing reliance on the law laid down by the Division Bench of the Bombay High Court INDIAN NATIONAL SHIPOWNERS ASSOCIATION VERSUS UNION OF INDIA 2008 (12) TMI 41 - BOMBAY HIGH COURT , which was confirmed by the Hon'ble Supreme Court in UNION OF INDIA VERSUS INDIAN NATIONAL SHIPOWNERS ASSOCIATION 2009 (12) TMI 850 - SC ORDER allowed the writ petition filed by the respondent. There is no question of setting aside the order passed by the learned single Judge on the basis of a decision rendered by a learned single Judge of the Rajasthan High Court. The appellants have filed this appeal without any legal basis - When there is a judgment rendered by the Hon'ble Supreme Court interpreting the provisions of Service Tax, it is not open to the appellants to file an appeal by placing reliance on the decision of the High Court of Rajasthan. In fact, the decision rendered by the High Court of Rajasthan was much prior to the judgment rendered by the Hon'ble Supreme Court. The High Court is flooded with litigations at the instance of the Government and the present case is a classic example as to how appeals are filed in a routine manner by placing reliance on the judgment of the High Court in a matter wherein, the issue is covered by the judgment of the Hon'ble Supreme Court. Appeal dismissed.

Summary

Issues involved:
Interpretation of service tax law based on judgments of different High Courts and the Supreme Court.

Analysis:

1. Interpretation of Service Tax Law:
The appeal was filed against an order allowing a writ petition, where the single Judge opined that the appellants were not entitled to levy service tax from the respondent for a specific period. The appellants relied on a judgment of the Rajasthan High Court, but the learned Standing Counsel acknowledged that the law laid down by the Supreme Court in a particular case was still applicable. The High Court emphasized that when the Supreme Court has interpreted the provisions of service tax, it is not permissible to file an appeal based on a High Court decision, especially when the High Court judgment predates the Supreme Court judgment. The Court highlighted the flood of litigations caused by the government filing appeals routinely, even when the issue is already covered by a Supreme Court judgment. The Court expressed hope that such frivolous appeals would not be filed in the future.

2. Legal Basis for Appeal:
The Court dismissed the writ appeal, stating that there was no legal basis for setting aside the single Judge's order based on a Rajasthan High Court decision. The appeal was considered to be without merit since the Supreme Court judgment was already in force, rendering the Rajasthan High Court decision irrelevant. The Court's decision was based on the principle that when the Supreme Court has provided a definitive interpretation of the law, lower courts' decisions should not be relied upon for filing appeals.

3. Observations and Conclusion:
The High Court concluded by dismissing the writ appeal and making observations about the flood of appeals filed by the government without proper legal basis. The Court highlighted the importance of respecting the judgments of the Supreme Court in matters of legal interpretation and discouraged the filing of frivolous appeals. The appeal was dismissed with the observation that no costs were to be incurred, and the connected miscellaneous petition was closed.