Larsen & Toubro Limited vs. UOI (Bombay High Court)

DATE: March 28, 2016 (Date of pronouncement)
DATE: May 30, 2016 (Date of publication)
AY: -
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Reluctance of AOs to comply with binding Court judgements leads to negative reactions amongst business entities doing business in India and hurts National pride and image. Hereafter non-compliance with orders would visit officials with individual penalties, including forfeiture of salaries

We are mindful of the fact that the judgment and order of this Court was delivered much after the impugned order. The impugned order is dated 29th January, 2016, whereas the Division Bench in the petitioner’s case is dated 22nd February, 2016. But, we expected the officers to save precious time of this Court in not requiring it to pass a detailed order and judgment by withdrawing the impugned condition / clause. That is not forthcoming as we find that officers after officers are reluctant to take decisions for the consequences might be drastic for them. No officer is acting independently and following judgments of this Court, but waiting for the superiors to give them a nod. Even the superiors are reluctant given the status of the assessee and the quantum of the demand or the refund claim. We are sure that some day we would be required to step in and order action against such officers who refuse to comply with the Court judgments and which are binding on them as they fear drastic consequences or unless their superiors have given them the green signal. If there is such reluctance, then, we do not find any enthusiasm much less encouragement for business entities to do business in India or with Indian business entitles. Such negative reactions / responses hurt eventually the National pride and image. It is time that the officers inculcate in them a habit of following and implementing judicial orders which bind them and unmindful of the response of their superiors. That would generate the right support from all, including those who come forward to pay taxes and sometimes voluntarily. Hereafter if such orders are not withdrawn despite binding Division Bench judgments of this Court that would visit the officials with individual penalties, including forfeiture of their salaries until they take a corrective action. If any approval or nod is required from superiors that should also be granted expeditiously and while obeying the court orders, the officers can always reserve the Revenue’s rights to challenge them in appropriate legal proceedings. A copy of order be sent to the Secretary in the Ministry of Finance, Government of India and the Chairman, Central Board of Excise and Customs. We are constrained to observe as above simply because repeated suggestions to Mr. Jetly so as to persuade the officers to withdraw the orders impugned in the petition of their own did not meet any favourable response

7 comments on “Larsen & Toubro Limited vs. UOI (Bombay High Court)
  1. What economy the finance ministry is talking about? Let the hon court fine the officers responsible; let the fines by paid by the very officers would be right remedy; if senior officers failed to give instruction they too may be fined concurrently is my considered advice

  2. CA DILIP LOHIYA says:

    Lower authority not follow the judgements of Hon,le courts.There must be provisions under the relevant law to follow the precedents and judgements so that time of both assessee and Hon,ble authorities may save and litigation cost also.

  3. manish parekh says:

    When are we going to bring the government officers on par with other normal citizens ? Are they special? Sir, they ( British Officers) were special during British Raj since they had to suppress people & inculcate a feeling to inferiority in people’s mind to RULE them. It was the need of the hour for them. Problem is we are continuing with same set of rules & acts, in same format, with same powers, & the bureaucrats are not allowing these rules to be changed as it SUITS them. Now the rules & acts should be re-drafted to ADMINISTER & not RULE. Some strong leader needs to bring about this change which has not been allowed for this 65 years.

  4. sorry Lohiaji is not right; just because court orders every one needs to follow without any demur, unless contested by way of appeal or file curative petitions; in the absence just follow court orders; no need of any statute to be made; if any statute is made it is obviously preposterous please.

  5. Parth Garg says:

    It is not enough to penalise the AOs monetarily. Such gross insubordination should go into their service records and any repetition should result in suspension and dismissal from service.

  6. Dipak Shah says:

    I have been observing in my cases for last 22 years, Hon. Judges/Justices do not follow well settled Judgments of SUpreme Court of India doing their whims, ignoring Hon. SUpreme Court Cases well settled>???in party in person cases. Hon. Supreme Court has not made any ruling for taking up the matter of such courses in legal way . Except impeachment? This is very pitiable situation of party in person.

  7. Dipak Shah says:

    Only appeal, appeal til you die for years together???!!!

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