Columbia Sportswear Company v. DIT, Bangalore (2011 SLP)

Quick Summary

This case answers a route question: when you disagree with an AAR ruling, do you go straight to the Supreme Court under Article 136, or should you first move the High Court under Articles 226/227?

The Supreme Court treated the AAR as a tribunal, so both routes exist in law. But the Court advised restraint: come directly to the Supreme Court only for matters of general importance or where a similar question is already pending. Here, the SLP was dismissed with liberty to approach the High Court.

Issues

• Can an AAR ruling be challenged directly before the Supreme Court under Article 136?
• Or should the challenge first be filed in the High Court under Articles 226/227?

Rules

AAR as Tribunal: The Authority for Advance Rulings functions like a tribunal for Articles 136 and 227. Its rulings are amenable to both Supreme Court and High Court review.

Self-imposed Filter: Direct SLP to the Supreme Court should be rare—reserved for questions of general importance or where a similar issue is already pending in the Supreme Court.

Arguments

Judgment

Held: The AAR is a tribunal for Articles 136 and 227. Its rulings can be challenged either directly in the Supreme Court or before the High Court.

However, direct SLPs should be entertained only for substantial questions of general importance or if a similar issue is already pending. In this case, the Court found no such ground, dismissed the SLP, and granted liberty to approach the High Court under Articles 226/227.

Ratio Decidendi

An AAR ruling is judicially reviewable as that of a tribunal. The forum choice exists, but the Supreme Court’s direct jurisdiction under Article 136 is to be used sparingly.

Why It Matters

• Clarifies procedural pathway for challenging AAR rulings.
• Guides when to use Article 136 vs High Court writs.
• Useful for exams on tribunals and judicial review.

Key Takeaways

• AAR = tribunal for Articles 136 & 227.
• Both routes exist, but direct SLPs are exceptional.
• Absent general importance, go to the High Court first.

Mnemonic + 3-Step Hook

Mnemonic: “AAR: Approach, Ask, Route”

1. Approach: AAR is a tribunal.
2. Ask: Is the question of general importance?
3. Route: If not, use the High Court (226/227) before Art. 136.

IRAC Outline

Glossary

• AAR (Authority for Advance Rulings): Body giving binding tax rulings to specified applicants.
• Article 136: Supreme Court’s discretionary power to grant special leave.
• Articles 226/227: High Court powers for writs and supervisory jurisdiction.
• Tribunal: Quasi-judicial body whose decisions are judicially reviewable.

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