Union of India impleadment in tax proceedings is mandatory where liability is sought against Indian Railways.

Liability for taxable services provided by Indian Railways could not be enforced against the Divisional Railway Manager alone because the Union of India, Ministry of Railways, was the real entity against whom proceedings had to be instituted. Applying Article 300 of the Constitution and Section 79 of the Code of Civil Procedure, proceedings against the Central Government were required to be brought in the name of the Union of India. As the Union of India was never impleaded or given notice, the proceedings culminating in the adjudication order were treated as void, and the appeal filed only by the Divisional Railway Manager was held to be incompetent.

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Issues: Whether service tax proceedings and the adjudication order were a nullity for want of impleadment of the Union of India, and whether the appeal filed by the Divisional Railway Manager alone was incompetent.

Analysis: Liability arising from taxable services provided by Indian Railways was sought to be enforced against the Divisional Railway Manager alone, although the Union of India, Ministry of Railways, was the real entity against whom proceedings ought to have been instituted. The requirement that proceedings against the Central Government be brought in the name of the Union of India was applied with reference to Article 300 of the Constitution of India and Section 79 of the Code of Civil Procedure, 1908. Since the Union of India was not impleaded or put on notice at any stage, the proceedings culminating in the adjudication order were treated as void.

Conclusion: The adjudication order was a nullity and the appeal was incompetent.

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