2008 (2) TMI 584 - HC - Service Tax

Order- the Director General of Service Tax has no inherent jurisdiction to entertain an appeal against the order of the Lower Authorities and pass appropriate orders. Held that- order recalled and writ petition directed to be listed for hearing on merits.

Summary

Issues:
1. Jurisdiction of Director General of Service Tax to entertain an appeal against Lower Authorities' orders.
2. Validity of directions issued by the Court in the writ petitions.
3. Dismissal and restoration of specific writ petitions.

Analysis:
1. The judgment addresses the issue of the Director General of Service Tax's jurisdiction to entertain an appeal against Lower Authorities' orders. The Court noted that the parties conceded that the Director General lacks inherent jurisdiction to do so. Consequently, the Court ruled that the directions issued in the writ petitions, requiring parties to approach the Director General for a hearing, must be recalled due to the lack of jurisdiction.

2. Regarding the validity of the directions issued by the Court in the writ petitions, the judgment distinguishes between two specific cases. In Writ Petition No. 3169 of 2004, the order merely granted a hearing to the petitioner. However, since the Director General lacks jurisdiction to entertain the matter, the order was deemed redundant and ineffective, leading to the dismissal of that writ petition. On the other hand, in Writ Petition No. 1110 of 2004, the Court recalled the order dated 12-7-2004 and directed the petition to be listed for a hearing on merits due to the reasons stated in the judgment.

3. The judgment concludes by disposing of both review petitions, with each party bearing their own costs. The Court's decision to recall certain orders and dismiss one writ petition while directing the other for a hearing on merits reflects a careful consideration of the lack of jurisdiction of the Director General of Service Tax and the implications on the validity of the directions issued in the writ petitions.