Airports Authority of India alleges harassment and threat and goes to High Court without permission from COD
Perhaps it is only the Revenue Ministry that knows that you have to get clearance from the Committee On Disputes before going to court against a government department or organisation. After all they contribute enormously to litigation in the country. The other day I was witness to an advocate arguing a writ in the High Court for a leading Public Sector Bank against a Central Government department. Suddenly the judge asked him, “Do you have permission from the Committee?”. “What Committee my lord?”, he asked, “my bank has authorized me!” . He was obviously not aware that such permission is required.
It appears the AAI is also in a similar situation. After voluntarily paying Rs.20 Crores as Service Tax, the AAI took the government to court alleging that the amount was paid due to harassment and threat of arrest and they forgot to take permission from the COD.
Isn’t it a very serious matter that a very large Government Authority alleges that another organ of the Government harassed it and threatened with arrest? Incidentally there is no arrest under Service Tax. But it is a fact that very often Central Excise officers threaten Service Tax assesses with arrest and force them to make spot payment.
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