2017 (1) TMI 845 - HC - Service Tax

Appropriate forum to file appeal - activities of the State in relation to the agricultural urban wholesale markets - Held that - we preserve all such issues raised by the State for being raised in appropriate proceedings, since we are of the view that it would be inappropriate for us to consider such an issue in this appeal because no such ground was raised in the writ petition - All issues relating to the constitutionality of the provisions as may be found available to the appellant would stand left open and the impugned judgment is affirmed in so far as it relegates the State to the appropriate statutory appellate authority - The interlocutory order granted in this appeal will continue for a period of four weeks to enable the appellant to submit its appeal before the appropriate statutory authority - appeal disposed off.

Summary

Issues:
1. Challenge to the correctness of the judgment dated 31.03.2015 in W.P.(C)No. 10423/2015 regarding assessment to service tax under the Finance Act, 1994.
2. Applicability of the Finance Act, 1994 to the activities of the State in relation to agricultural urban wholesale markets.
3. Constitutionality of the provisions of the Finance Act, 1994.

Analysis:

1. The primary issue in this case pertains to the challenge of the correctness of a judgment regarding the assessment to service tax under the Finance Act, 1994. The State attempted to base its plea on the sovereign authority of the State and its activities through the State Government as part of sovereign functions. However, the learned single Judge did not find this argument persuasive and directed the appellant to the statutory appellate authority under the Finance Act, 1994.

2. The State of Kerala, in this appeal, sought to raise additional grounds challenging the applicability of the Finance Act, 1994, particularly in relation to the activities of the State concerning agricultural urban wholesale markets. The court acknowledged the importance of preserving such issues for appropriate proceedings, as they were not raised in the initial writ petition. The judgment affirmed the decision to relegate the State to the statutory appellate authority under the Finance Act, 1994, leaving all issues regarding the constitutionality of the provisions open for future consideration.

3. Furthermore, an interlocutory order was granted in the appeal, allowing the State a period of four weeks to submit its appeal before the appropriate statutory authority. The court directed that the appeal should be considered in accordance with the law. Given the attention the matter received before the single Judge and the Division Bench, the Appellate Authority was instructed to sympathetically consider the issue of the appeal's filing period, treating it as instituted within the prescribed timeframe. Ultimately, the appeal was ordered accordingly, maintaining the decisions regarding the statutory appellate authority and the considerations for the appeal process.