Applicability of High Court Decision in other jurisdiction

[Shyam Naik]

There was delay in filing R3B. Department demanded interest on the cash component. The RTP submitted that interest not applicable merely for late filing of return relying on Arya Cotton Industry case (2024 (7) TMI 239 - GUJARAT HIGH COURT). Department served SCN stating judgment rendered by Gujarat High Court applicable in the state of Gujarat only and not enforceable in the state of Jharkhand. The ratio of the judgment cannot be applied in the state of Jharkhand unless pronounced by the Supreme Court.

It appears that judgment / interpretation by a High Court on a Central Legislation (CGST in this case) are applicable in all other jurisdiction unless there is contradictory judgment by the jurisdictional High Court. Is there is any judgment etc. on the subject.

AI Summary

High Court GST rulings bind only within jurisdiction; Supreme Court decisions are nationwide binding under Section 279 A High Court's interpretation of a central law, such as GST, is territorially limited to its jurisdiction and holds persuasive value elsewhere unless contradicted by the local High Court or overruled by the Supreme Court. Departments may challenge or refuse to follow such judgments outside the originating jurisdiction, asserting that only Supreme Court rulings are binding nationwide. While High Courts are not bound by decisions of other High Courts, they may choose to follow them unless a reasoned contrary order exists. Administrative bodies like Committees of Commissioners may adopt a High Court judgment for uniform application across states, subject to approvals from higher authorities. The federal judicial structure preserves each High Court's independent jurisdiction, with the Supreme Court as the ultimate authority whose decisions bind all courts in India.