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

Territorial effect of judicial decisions limits their binding force across jurisdictions unless nationally affirmed in central law matters.
The document explains that High Court interpretations of a central statute have persuasive value outside their territorial limits but are not binding on other jurisdictions unless affirmed by the Supreme Court or adopted by the jurisdictional High Court; administrative officers may follow such decisions in the absence of contrary local authority, and coordinated acceptance by revenue review mechanisms can produce operational uniformity across Commissionerates.