Challenge to Service Tax valuation rule followed binding precedent and was disposed of by the High Court.

Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006 was challenged as ultra vires and unlawful, but the Madras HC treated the issue as covered by the Delhi High Court decision affirmed by the Supreme Court. Applying that binding precedent, the Court followed the existing line of authority and rejected any fresh reconsideration of the rule's validity. The writ petitions were accordingly disposed of in line with the precedent.

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Issues: Whether Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006 was liable to be declared ultra vires and unlawful.

Analysis: The issue raised in the writ petitions was treated as already covered by the decision of the Delhi High Court, as affirmed by the Supreme Court, and the Court followed that line of authority.

Conclusion: The challenge to Rule 5(1) was disposed of in line with the binding precedent, resulting in disposal of the writ petitions.

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