Service Law - Pay Parity – Appeal against High Court's decision – The High Court directed that the respondents (Senior Dietician and Dietician) under Union Territory Administration, Chandigarh, be given pay scales at par with their counterparts in the Government of Punjab – Supreme Court considered the High Level Equivalence Committee's report which found significant differences in duties and responsibilities between the posts in the two administrations – Held that respondents are not entitled to the same pay scales as their counterparts in Punjab – Doctrine of equal pay for equal work applies only when employees are similarly situated with identical duties and responsibilities – High Court's decision set aside, and the Central Administrative Tribunal's order sustained. [Paras 1-8]

Equal Pay for Equal Work – Legal Interpretation – Analysis – Held – Principle of equal pay for equal work requires wholesale identity in duties and responsibilities – Mere similarity in designation or nature of work is insufficient – Evaluation by expert body necessary in cases of disputed parity – High Court erred in equating posts based on respondent's pleadings without expert evaluation. [Para 7]

Decision – Appeal Allowed; High Court Judgment Set Aside – Supreme Court set aside the High Court's order and upheld the Central Administrative Tribunal's decision, denying pay parity – Respondents not entitled to pay scales equivalent to their counterparts in Punjab – No order as to costs. [Para 8]

Contract Law - Extra Work and Claims – Appeal against High Court’s judgment – Appellant-firm, engaged in construction, performed additional work under a contract with the State of Gujarat and claimed additional payment – High Court set aside trial court's decree favoring the appellant, citing clauses 8 and 10 of the agreement and final bill acceptance – Supreme Court held that acceptance of final bill "under protest" does not preclude genuine claims for additional work – Principles from relevant case law support contractor's right to claim extra payment despite final bill acceptance. [Paras 1-12]

Doctrine of Estoppel – Applicability in Construction Contracts – Analysis – Held – Contractor not estopped from claiming additional payment if final bill accepted under protest and additional work performed as per direction – Mere acceptance of final bill under protest does not amount to waiver of genuine claims. [Para 9]

Decision – Appeal Allowed; Trial Court Judgment Restored – Supreme Court set aside the High Court’s judgment and restored the trial court’s decree awarding Rs. 227,758 to the appellant with interest at 6% per annum from the date of suit till realization – No order as to costs. [Para 12]

Family Law - Mediation – Dispute between brothers – Supreme Court directs the parties to attempt resolution through mediation – Quotes Mahatma Gandhi's principles on resolving disputes outside of court – Emphasizes the role of lawyers in advising clients to seek mediation, especially in family and business disputes – Cites Section 89 CPC which encourages alternative dispute resolution mechanisms. [Paras 1-7]

Role of Lawyers in Dispute Resolution – Legal Guidance – Analysis – Held – Lawyers should guide clients towards mediation to prevent long, costly litigation – Encouraged by historical example from Mahatma Gandhi's practice as a lawyer, emphasizing resolution and unity over adversarial court battles. [Para 4-5]

Decision – Matter Referred to Mediation Centre – Supreme Court referred the matter to the Bangalore Mediation Centre, directing parties to appear for mediation and to report back to the court – Emphasized the potential for mediation to achieve a more amicable and satisfactory resolution. [Para 6-7]

Representing Advocates:

G.V. Chandrashekar, N.K. Verma, Anjana Chandrashekar for the Appellant

P. Vishwanatha Shetty, Vijay Kumar Pardesi, Mahesh Kumar, G.N. Reddy for the Respondent

Excise Law - Valuation of Physician Samples – Appeal against Tribunal's order – Appellant contended that physician samples, prohibited from being sold under the Drugs and Cosmetics Act, 1940, should not be subject to excise duty – Supreme Court held that excise duty is payable on manufactured goods whether or not they are sold, and the statutory prohibition on sale does not affect marketability for excise purposes – Physician samples are liable to excise duty, and their value should be assessed on a pro-rata basis. [Paras 1-42]

Marketability – Legal Interpretation – Analysis – Held – For excise duty to be levied, goods must be marketable, i.e., capable of being sold – Statutory prohibition on the sale of physician samples does not negate their marketability for excise purposes as they are produced for distribution – The twin test for excisability includes manufacture and capability of being sold. [Para 7-22]

Decision – Appeals Partly Allowed; Pro-rata Valuation Upheld – Supreme Court allowed the appeal in part, directing valuation of physician samples on a pro-rata basis – Remanded the matter to the adjudicating authority for reassessment accordingly – Other appeals dismissed. [Para 42]

Taxation Law - Refund of Excess Tax Paid – Civil Appeal – KGST Act – CST Act – Article 265, 286 of the Constitution – Tax refund claim by non-dealer – Supreme Court dismisses appeal for refund by non-dealer on the basis of clear statutory provisions limiting refunds to dealers only – No proactive stance taken despite overpayment to avoid breach of statutory interpretation principles.

Taxation Law – Refund Claim Under KGST Act – Interpretation of Statutes – Section 44 of the KGST Act stipulates that only dealers are entitled to claim a refund for excess tax paid – Appellant, not being a dealer, is not entitled to a refund despite overpayment – Appeal dismissed based on unambiguous statutory language – Equity considerations and proactive interpretations deemed inapplicable in this context.

Exemption Under CST Act – Section 5(3) CST Act – Penultimate Sale – Export Transactions – Requirement of Agreement or Evidence – Claim for exemption under CST Act for penultimate sales denied in absence of agreement or evidence at the time of auction sale – Clear evidence of linkage to export necessary for exemption under Section 5(3) – Claim for refund also dismissed as no tax demand was made on appellant.

Decision:

Refund of Tax Paid to Seller – Appeal Dismissed – Court upholds findings of lower authorities that Section 44 of the KGST Act restricts refunds to dealers only – Despite recognizing overpayment, refund to non-dealer cannot be sanctioned due to clear statutory mandate – No interference warranted with factual findings of lower authorities.

Taxation Law - Refund of Excess Tax Paid – Civil Appeal – KGST Act – CST Act – Article 265, 286 of the Constitution – Tax refund claim by non-dealer – Supreme Court dismisses appeal for refund by non-dealer on the basis of clear statutory provisions limiting refunds to dealers only – No proactive stance taken despite overpayment to avoid breach of statutory interpretation principles.

Taxation Law – Refund Claim Under KGST Act – Interpretation of Statutes – Section 44 of the KGST Act stipulates that only dealers are entitled to claim a refund for excess tax paid – Appellant, not being a dealer, is not entitled to a refund despite overpayment – Appeal dismissed based on unambiguous statutory language – Equity considerations and proactive interpretations deemed inapplicable in this context.

Exemption Under CST Act – Section 5(3) CST Act – Penultimate Sale – Export Transactions – Requirement of Agreement or Evidence – Claim for exemption under CST Act for penultimate sales denied in absence of agreement or evidence at the time of auction sale – Clear evidence of linkage to export necessary for exemption under Section 5(3) – Claim for refund also dismissed as no tax demand was made on appellant.

Decision:

Refund of Tax Paid to Seller – Appeal Dismissed – Court upholds findings of lower authorities that Section 44 of the KGST Act restricts refunds to dealers only – Despite recognizing overpayment, refund to non-dealer cannot be sanctioned due to clear statutory mandate – No interference warranted with factual findings of lower authorities.

Central Excise - Duty on Captive Consumption - Manufacture for Internal Use – Appeal against order demanding duty on plant and machinery, including testing equipment, manufactured for internal use by appellant – Appellant claimed activities were for research and development and not manufacturing – Supreme Court found that equipment was indeed manufactured and was saleable and marketable, confirming the duty demand. [Paras 1-13]

Research and Development vs. Manufacture - Captive Consumption – Held: Mere assembly for research and development, if resulting in saleable and marketable goods, amounts to manufacture – As the appellant admitted in balance sheet and director's report that testing equipment was developed to avoid imports, it was considered manufacturing. [Para 10]

Extended Period of Limitation - Suppression of Facts - Non-disclosure of manufacturing activity to the department justified the invocation of the extended period of limitation for duty demand. [Para 12]

Decision: Appeal dismissed. Duty demand confirmed. [Para 13]

Administrative Law – Disciplinary Action – Compulsory Retirement – Judicial Officer found guilty of traveling without ticket on three occasions – Appellant claimed that magistrates were not required to buy tickets for train travel – Appellant caught without ticket on 21.2.1997, 13.5.1997, and 5.12.1997 – Misconduct charges established against the appellant – High Court dismissed writ petition challenging the disciplinary action – Supreme Court upheld the compulsory retirement as proportionate to the misconduct. [Paras 2-30]

Judicial Conduct – Standards of Propriety – Held – Judicial officers are expected to uphold the highest standards of integrity and conduct – Appellant's behavior in traveling without tickets and subsequent misconduct towards Railway staff deemed unbecoming of a judicial officer – Punishment of compulsory retirement considered appropriate and not disproportionate. [Para 29]

Decision – Appeal Dismissed – Supreme Court affirmed the decision of the High Court and the disciplinary authority, finding the charges of misconduct proved and the penalty of compulsory retirement justified. [Para 31]

Taxation - Service Tax Liability - Airports Authority of India Act and Finance Act - Appellant authorized by AAI to collect airport admission ticket charges - Whether appellant liable to pay service tax on such collections - High Court directed verification if AAI had paid the service tax - Appellant to pay service tax if AAI had not paid - Supreme Court upholds High Court’s decision - Appellant deemed liable under statutory definition as authorized service provider - Appeal dismissed. [Paras 1-8]

Taxable Service - Definition and Liability - Finance Act, 1994 - Analysis of Clause 105(zzm) of Section 65 - Held - Appellant steps into the shoes of AAI for services provided based on authorization - Liability to pay service tax affirmed - No merit in contention that AAI alone was responsible for service tax. [Para 8]

Decision - Service Tax Liability Affirmed - Court dismisses the appeal - Holds appellant liable for service tax as per statutory provisions - Emphasizes appellant's role as authorized person under AAI's licence agreement. [Para 8]