Madras High Court
Shri Govindaraja Mills Ltd vs Union Of India on 24 June, 2022
W.P.No.31421 of 2006 etc. batch
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED 24.06.2022
CORAM
THE HONOURABLE Mr. JUSTICE R. MAHADEVAN
AND
THE HONOURABLE Mr. JUSTICE MOHAMMED SHAFFIQ
W.P.No.31421 of 2006 and M.P.No.1 of 2006,
W.P.No.31728 of 2006 and M.P.No.1 of 2006,
W.P.No.31769 of 2006 and M.P.No.1 of 2006
AND
W.P.No.31779 of 2006 and M.P.No.1 of 2006
Shri Govindaraja Mills Ltd.
Unit II rep. by Executive Director
V.Ramkumar
R.S.1 Sayalgudi Road
Kulasekaranallur, Savvaspuram Village
Aruppukottai .. Petitioner in W.P.No.31421 of 2006
Jayadevi Mills (P) Ltd.
Rep. by Director
V.Ramkumar
R.S.1 Sayalgudi Road
Kulasekaranallur, Savvaspuram Village
Aruppukottai .. Petitioner in W.P.No.31728 of 2006
Shri Govindaraja Mills Ltd.
Unit I rep. by Executive Director
V.Ramkumar
R.S.1 Sayalgudi Road
Kulasekaranallur, Savvaspuram Village
Aruppukottai .. Petitioner in W.P.No.31769 of 2006
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W.P.No.31421 of 2006 etc. batch
Shri Ramalinga Mills Ltd.
B-Unit rep. by Chief Executive
V.Ramkumar
R.S.1 Sayalgudi Road
Kulasekaranallur, Savvaspuram Village
Aruppukottai .. Petitioner in W.P.No.31779 of 2006
Vs
1.Union of India
Rep. by the Secretary
Department of Revenue
Ministry of Revenue
North Block, New Delhi 110 001
2.The Chairman
Central Board of Excise and Customs
North Block, New Delhi 110 001
3.The Chief Commissioner of Central Excise
26/1, Uthamar Gandhi Salai
Chennai 600 034
4.The Commissioner of Central Excise
Office of the Commissioner of Central Excise
Central Revenue Building
Lal Bahadur Shastri Marg
Madurai 625 002
5.The Assistant Commissioner of Central Excise
Service Tax Cell
130/8-1, Kutcheri Road
Virudhunagar Division, Virudhunagar
6.The office of the Superintendent of Central Excise
Aruppukottai I Range
Aruppukottai .. Respondents in all W.P.s.
Writ petitions filed under Article 226 of the Constitution of India
praying for issuance of a writ of Declaration, declaring the provisions of
https://www.mhc.tn.gov.in/judis
W.P.No.31421 of 2006 etc. batch
Explanation to Section 65(105) of the Finance Act, 1994, as introduced by the
Finance Act, 2005, as beyond the legislative competence of the Parliament and
the provisions of Rule 2(1)(d)(iv) of the Service Tax Rules, 1994, as
introduced by Notification No.23/2005 ST dated 07.06.2005 as being violative
of the Finance Act, 1994 and as being violative of the Articles 14, 19(1)(g),
245 and 265 of the Constitution of India, insofar as the petitioners are
concerned.
For Petitioner Mr.S.Kadarkarai
in all W.P.s
For R1 No appearance
in all W.P.s
For R2 to R6 Mr.T.Pramodkumar Chopda
in all W.P.s
COMMON ORDER
[Order of the Court was made by R.MAHADEVAN, J.]
According to the petitioners, they are manufacturers and exporters of
cotton yarn to various countries viz., Korea, Israel, Hong Kong, European
countries etc. through overseas agents. While so, the 6th respondent vide
a common notice dated 03.05.2006, directed the petitioners to furnish
month-wise particulars of commission paid to the foreign agents for marketing
of their product manufactured in India for the period from 16.06.2005 to
31.03.2006 and demanded service tax along with interest. Aggrieved with the
said demand, the petitioners are before this Court with these writ petitions
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W.P.No.31421 of 2006 etc. batch
seeking to declare the provisions of Explanation to Section 65(105) of the
Finance Act, 1994, as introduced by the Finance Act, 2005, as beyond the
legislative competence of the Parliament and the provisions of Rule 2(1)(d)(iv)
of the Service Tax Rules, 1994, as introduced by Notification No.23/2005 ST
dated 07.06.2005 as being violative of the Finance Act, 1994 and as being
violative of the Articles 14, 19(1)(g), 245 and 265 of the Constitution of India.
2. A common issue involved in these writ petitions is to the applicability
of service tax on the alleged taxable services provided by a non-resident or a
person located outside India, to a recipient in India.
3. When these matters are taken up for consideration, the learned
counsel appearing for the petitioners submitted that the issue involved herein,
has already been considered and decided by a Division Bench of this Court by
order dated 19.08.2014 in W.P.No.8124 of 2008 etc. batch, the relevant
portion of which, is usefully extracted hereunder :
“2. The learned counsel for the parties state that the Special Leave
Petition filed against the judgment of the Bombay High Court in Indian
National Ship Owners Association Vs. Union of India [2009(13) STR 235
(Bom.)], having been dismissed by the Hon'ble Supreme Court, service tax
liability on any taxable service provided by a non-resident or a person located
outside to a recipient in India, would arise with effect from 18.04.2006, i.e.,
after enactment of Section 66A of Finance Act, 1994.
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W.P.No.31421 of 2006 etc. batch
3. ... ...
4. In the aforesaid facts and circumstances, we hold that the parties
would be bound by the judgment to be rendered by the Hon'ble Supreme
Court. However, in case some aspects raised in these petitions are not
addressed by the Hon'ble Supreme Court, the parties are at liberty to revive
these petitions.
5. These writ petitions are closed in terms aforesaid. The interim
orders would enure to the benefit of the parties till a decision is rendered by
the Hon'ble Supreme Court. The parties will individually reply to the show
cause notices sent to them, so that the proceedings are kept alive. No costs.
Consequently, connected miscellaneous petitions are closed.”
4. Following the aforesaid order, which is squarely applicable to the
facts of the present cases, wherein the tax liability is relating to the period
16.06.2005 to 31.03.2006, these writ petitions stand disposed of accordingly.
No costs. Connected miscellaneous petitions are closed.
[R.M.D., J.] [M.S.Q., J.]
24.06.2022
Index : Yes/No
gya
https://www.mhc.tn.gov.in/judis
W.P.No.31421 of 2006 etc. batch
To
1.The Secretary
Department of Revenue
Ministry of Revenue
North Block, New Delhi 110 001
2.The Chairman
Central Board of Excise and Customs
North Block, New Delhi 110 001
3.The Chief Commissioner of Central Excise
26/1, Uthamar Gandhi Salai
Chennai 600 034
4.The Commissioner of Central Excise
Office of the Commissioner of Central Excise
Central Revenue Building
Lal Bahadur Shastri Marg
Madurai 625 002
5.The Assistant Commissioner of Central Excise
Service Tax Cell
130/8-1, Kutcheri Road
Virudhunagar Division, Virudhunagar
6.The office of the Superintendent of Central Excise
Aruppukottai I Range
Aruppukottai
https://www.mhc.tn.gov.in/judis
W.P.No.31421 of 2006 etc. batch
R.MAHADEVAN, J.
AND
MOHAMMED SHAFFIQ, J.
gya
W.P.Nos.31421, 31728, 31769
AND
31779 of 2006
24.06.2022
https://www.mhc.tn.gov.in/judis
