The High Court dismissed writ petitions challenging the retrospective validity of amendments to Section 65(105)(zzzz) of the Finance Act, 1994 made by the Finance Act, 2010. The Court upheld the provisions as clarificatory and reviewed related precedents.
Petitions dismissed; no costs awarded.
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THE HONOURABLE SRI JUSTICE GODA RAGHURAM
AND THE HONOURABLE SRI JUSTICE M.S.RAMACHANDRA RAO
Writ Petition Nos. 21750 of 2010, 176 and 10209 of 2011 and 13633 of 2010
Dated: 18-02-2013
Between: M/s Cyber Towers, rep. by its Partner Mohd. Noor Ul Haq and another And Union of India, Ministry of Finance, rep. by its Secretary, New Delhi and others
…Petitioners
…Respondents.
Common order (Per Hon’ble Sri Justice Goda Raghuram)
The petitioners are service providers, who have been either subjected to initiation of proceedings for levy and collection of service tax; or apprehend proceedings for such levy and collection and have therefore filed these writ petitions as a prophylactic. The challenge in the writ petitions is to provisions of Section 65 (90a), 65 (105)(zzzz) read with Section 66 of the Finance Act, 1994, as amended by the Finance Act, 2007; the Finance Act, 2008; and the Finance Act, 2010. By the Finance Act, 2010, inter alia provisions of Section 65 (105)(zzzz) were amended with retrospective effect from 1-6-2007 ex abundanti cautela, as a clarificatory measure.
Several High Courts vide Shubh Timb Steels Ltd. V. Union of India[1] , Utkal Builders Ltd. V. Union of India[2] , Cinemax India Ltd. V. Union of India[3] , Retailers Association of India v. Union of India[4] and Home Solutions Retails (India) Ltd. V. Union of India[5] , have considered the validity including of the retrospective reach given by the Finance Act, 2010 to the provisions of Section 65 (105)(zzzz) and have upheld the provisions. Full Bench of the Delhi High Court in the last reported judgment has also over-ruled its earlier judgment in Home Solutions Retails (India) Ltd v. Union of India, reported in 237 ELT 209 and has consequently declared the retrospective amendment to the provisions of Section 65 (105)(zzzz) to be clarificatory and ex abundanti cautela in nature.
We are in respectful agreement with the view and conclusions and the rationes set out in the several judgments supra. Accordingly
and for the aforesaid reasons, the challenge in these writ petitions must fail and the writ petitions are accordingly dismissed. But in the circumstances without costs.
_________________________ GODA RAGHURAM, J
18th February, 2013
_______________________________ M.S.RAMACHANDRA RAO, J GRR
1 issue framed by the court
Whether the retrospective amendment to Section 65(105)(zzzz) of the Finance Act, 1994 by the Finance Act, 2010 is valid.
Colour shows how this judgement treated each authority
Shubh Timb Steels Ltd.Referred¶10
Shubh Timb Steels Ltd. V. Union of India
Utkal Builders Ltd.Referred¶10
Utkal Builders Ltd. V. Union of India
Cinemax India Ltd.Referred¶10
Cinemax India Ltd. V. Union of India
Retailers Association of IndiaReferred¶10
Retailers Association of India v. Union of India
Home Solutions Retails (India) Ltd.Referred¶10
Home Solutions Retails (India) Ltd. V. Union of India
4 provisions across 2 enactments
M/s Cyber Towers, rep. by its Partner Mohd. Noor Ul Haq and another
Union of India, Ministry of Finance, rep. by its Secretary, New Delhi and others
Goda Raghuram
M.S. Ramachandra Rao
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
