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2021 (11) TMI 1109 - HC - Service TaxConstitutional Validity of Explanation to Section 65(105) of the Finance Act, 1994 and Rule 2(1)(d)(iv) of the Service Tax Rules, 1994 as introduced by the Finance Act, 2005 and Notification No. 23/2005-S.T., dated 7-6-2005 - vires of Articles 19(1)(g), 245 and 265 of the Constitution of India. HELD THAT - The issue involved herein is covered by the judgment of this Court in UNION OF INDIA, REP. BY THE SECRETARY, DEPARTMENT OF REVENUE, THE CHAIRMAN CENTRAL BOARD OF EXCISE AND CUSTOMS, THE CHIEF COMMISSIONER OF CENTRAL EXCISE VERSUS M/S. WHEELS INDIA LTD. 2018 (1) TMI 1697 - MADRAS HIGH COURT , in which, the Division Bench of this Court, after following the Supreme Court decision in UNION OF INDIA VERSUS INDIAN NATIONAL SHIPOWNERS ASSOCIATION 2009 (12) TMI 850 - SC ORDER , dismissed the writ appeal. Appeal dismissed.
Issues involved:
Challenge to the validity of Explanation to Section 65(105) of the Finance Act, 1994 and Rule 2(1)(d)(iv) of the Service Tax Rules, 1994 as ultra vires Articles 19(1)(g), 245, and 265 of the Constitution of India. Analysis: The appeal stemmed from the order dated 16-8-2010 in W.P. No. 6460 of 2006 where the respondent sought a writ of declaration against certain legislative provisions. The Single Judge, guided by a Bombay High Court decision upheld by the Supreme Court, ruled against the levy of service tax on the respondent for a specific period. The appellants contested this decision citing a Rajasthan High Court judgment. However, the Division Bench, referencing a previous judgment, emphasized that reliance on the Rajasthan High Court decision was unfounded due to the Supreme Court's authoritative interpretation. The High Court criticized the government for filing such appeals routinely, leading to unnecessary litigations, and dismissed the writ appeal with no costs. In conclusion, the writ appeal challenging the validity of certain provisions was dismissed by the High Court based on precedents set by the Supreme Court, emphasizing the importance of respecting higher court decisions and discouraging frivolous appeals.
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