M/S. NAGARJUNA CONSTN. CO. LTD.versusGOVERNMENT OF INDIA & ANR.

                        [2012) 10 S.C.R. 1064


A             M/S. NAGARJUNA CONSTN. CO. LTD.
                                   V.
                 GOVERNMENT OF INDIA & ANR.
                  (Civil Appeal No. 7933 of 2012)

                        NOVEMBER 09, 2012
B
                [D.K. JAIN AND ANIL R. DAVE, JJ.]

          Taxation - Service Tax - On works contract - Assessee
    paying service tax prior to 1.6.2007 under the categories
C   falling under Clauses (zzd), (zzq) and (zzzh) of s. 65 (105) of
    Finance Act, 1994 -Amendment of s. 65 (105) w.e.f. 1.6.2007
    introducing clause (zzzza) - Works Contracts Rules, 2007
    introduced giving an option for Composition Scheme @ 2%
    of the gross amount charged on the works contract - Circular
o   No. 981112008- ST dated 4.1.2008 clarified rule 3(3) of 2007
    Rules whereby the assessee who had already paid tax under
    the old provisions i.e. prior to 1.6.2007, was not entitled to the
    Scheme under 2007 Rules - Vires of the Circular challenged
    by the assessee, in a writ petition - High Court upheld the
E   validity of the Circular - On appeal, held: High Court rightly
    upheld the validity of the Circular - The Circular merely
    explains r. 3(3) of 2007 Rules, so as to provide guidelines -
    Sub-rule (3) of Rule 3 provides that in order to avail benefit
    of Rule 3, the assessee must opt for it, before payment of
F   service tax - The appellant-assessee having already paid the
    service tax and opting for the benefit under r. 3 thereafter, not
    entitled for the benefit - The Circular is neither contrary to the
    Finance Act nor to the rules made thereunder - The Circular
    or r. 3(3) also cannot be said to be discriminatory - Finance
G   Act, 1994- s. 65(105) (zzd), (zzq), (zzzh) and (zzzza)- Works
    Contracts (Composition Scheme for Payment of Service Tax)
    Rules, 2007 - r. 3(3) - Circular No. 981112008-ST dated
    4.1.2008.


H                                 1064
 NAGARJUNA CONSTN. CO. LTD. v. GOVERNMENT 1065
             OF INDIA & ANR.

     Appellant executed various contracts which were in         A
the nature of Composite Construction Contracts. Prior to
1.6.2007, it paid service tax under the categories of
taxable services falling under Clauses (zzd), (zzq) and
(zzzh) of Section 65 (105) of Finance Act, 1994. Sub-
section (105) of s. 65 was amended introducing Clause           B
(zzza) w.e.f. 1.6.2007 vide Notification No. 23/2007 dated
22.5.2007.

     Works Contracts (Composition Scheme for Payment
of Service Tax) Rules, 2007 was introduced. Under the           C
Scheme, an option of composition was offered @ 2% of
the gross amount charged on the works contract. Prior
to the composition, the effective tax rate under the other
category of Services would work out to be approximately
3.96% of the gross amount.
                                                                D
     The appellant wanted to opt for the scheme, but the
Department through the Circular No. 98/1/2008-ST, dated
4.1.2208, clarified Rule 3(3) of 2007 Rules. In view of the
clarification, the appellant, who had paid the service tax
prior to 1.6.2007, was not entitled to change the               E
classification of the single composite service under the
Composition Scheme.

     As the appellant had classified the contracts entered
prior to 1.6.2007 under the category of 'works contract
service' and had started discharging the service tax
                                                                F
liability at the rates specified under 2007 Rules, Show
Cause Notices were issued to the appellant for recovery
of difference of service tax payable by it alongwith
interest and penalty.
                                                                G
     The appellant filed writ Petition, challenging the vires
of the Circular dated 4.1.2008. The High Court dismissed
the petition. Hence, the present appeal.
    Dismissing the appeal, the Court
                                                                H
    1066   SUPREME COURT REPORTS              [2012] 10 S.C.R.

A      HELD: 1. The High Court did not commit any mistake
  while upholding validity of the Impugned Circular. The
  Impugned Circular has only explained the contents of
  Rule 3 (3) of Works Contracts (Composition Scheme for
  Payment of Service Tax) Rules, 2007 so as to provide
B guidelines to the Revenue Officers.On perusal of Rule 3
  (3) of the 2007 Rules, it is very clear that the assessee who
  wants to avail of the benefit under Rule 3 of the 2007
  Rules must opt to pay service tax in respect of a works
  contract before payment of service tax in respect thereof
c and the option so exercised is to be applied to the entire
  works contract and the assessee is not permitted to
  change the option till the said works contract is
  completed. [Paras 25, 26 and 27] (1077-D-G]

       2. In the instant case it is an admitted fact that the
D appellant-assessee had already paid service tax on the
  basis of classification of works contract which was in
  force prior to 1st June, 2007. In the circumstances, it
  cannot be said that the appellant had exercised a
  particular option with regard to the mode of payment of
E tax after 1st June, 2007 with regard to reclassified works
  contract. Not availing of CENVAT credit is absolutely
  irrelevant in the instant case. [Para 28) [1077-G-H; 1078-
  A-B]

F      3. It cannot be said that the Impugned Circular or the
  provisions of Rule 3(3) of the 2007 Rules are
  discriminatory. Those who had paid tax as per the
  provisions and classification existing prior to 1st June,
  2007 and those who opted for payment of tax under the
G provisions of Rule 3 of the 2007 Rules and paid tax before
  exercising the option belong to different classes. [Para
  29] (1078-C-D]

       4. The appellant has not challenged the validity of
  Rule 3 (3) of the 2007 Rules, therefore, the issue is not
H dealt with. The Impugned Circular is not contrary to the
  NAGARJUNA CONSTN. CO. LTD. v. GOVERNMENT 1067
              OF INDIA & ANR.

 Finance Act, 1994 or the statutory rules made thereunder         A
 and the Impugned Circular only provides guidelines as
 to how the provisions of Rule 3 (3) of the 2007 Rules are
 to be interpreted. Even if the Impugned Circular is set
 aside, the provisions of Rule 3 (3) of the 2007 Rules would
 remain and that would not benefit the appellant. [Para 30]       B
 [1078-D-E]

      Tata Teleservices Ltd. v. Commissioner of Customs
 2006 (1) SCC 746; Commissioner of Central Excise, Bolpur
 v. Ratan Melting and Wire Industries (2008) 231 ELT 22 -         C
 cited.
                      Case Law Reference:
      2006 (1) sec 746           Cited                Para 20
      (2008) 231 ELT 22          Cited                Para 20     D
     CIVIL APPELLATE JURISDICTION : Civil Appeal No.
 7933 of 2012.

        From the Judgment & Order dated 07.06.2010 of the High
  Court of Judicature of Andhra Pradesh at Hyderabad in Writ      E
· Petition No. 6558 of 2008.

     Arvind P. Datar, G. Natarajan, T.V.S. Raghavendra
 Sreyas, Nikhil Nayyar for the Appellant.
                                                                  F
      B. Bhattacharya, ASG, Harish Chandra, Arti Singh, Judy
 James, Ajay Singh, Nimisha Swaroop, B. Krishna Prasad for
 the Respondents.

     The Judgment of the Court was delivered by
                                                                  G
     ANIL R. DAVE, J. 1. Leave granted.

     2. This appeal arises from the judgment and final order
 dated 7th June, 2010, passed by the High Court of Andhra
·Pradesh in Writ Petition No. 6558/2008, whereby the High
 Court dismissed the petition filed by the appellant and upheld   H
    1068    SUPREME COURT REPORTS               [2012) 10 S.C.R.


A the validity of the Circular No. 98/1/2008-ST, dated 4.1.2008
  (hereinafter referred to as 'the Impugned Circular') issued by
  respondent no. 1 herein.

      3. The appellant had executed various contracts which
  were in the nature of composite construction contracts. The
8
  appellant had paid Sales Tax/ VAT on those contracts under
  the Andhra Pradesh General Sales Tax Act, 1957, Andhra
  Pradesh Value Added Tax Act, 2005 and other State
  enactments. Service tax was imposed on various services
  which had come into effect from different dates. Prior to 1.6.07,
C the appellant had paid service tax under the following
  categories of taxable services, namely:

        (a) Erection, commissioning or installation service under
        Section 65(105) (zzd) of the Finance Act, 1994 (hereinafter
D       referred to as 'the Act'),

        (b) Commercial or industrial construction service under
        Section 65(105) (zzq) of the Act,

        (c) Construction of complex (residential complex) service
E       under Section 65(105) (zzzh) of the Act.

        4.Sub-sections 39(a), 25(b) and 30(a) of Section 65 of the
    Act define the above mentioned services as under:

        "39(a): erection, commissioning or installation; means any
F
        service provided by a commissioning and installation
        agency, in relation to,- (i) erection, commissioning or
        installation of plant machinery, equipment or structures
        whether pre-fabricated or otherwise; or

G              (ii) installation of -

               (a) electrical and electronic devices, including
               wirings or fittings therefore; or

               (b) plumbing, drain laying or other installations for
H              transport of fluids; or
 NAGARJUNA CONSTN. CO. LTD. v. GOVERNMENT 1069
      OF INDIA & ANR. [ANIL R. DAVE, J.]
              (c) heating, ventilation or air-conditioning including    A
             related pipe work, duct work and sheet metal work;
             or

             (d) thermal insulation, sound insulation, fire proofing
             or water proofing; or                                      B

               (e) lift and escalator, fire escape staircases or
             trave!ators; or

             (f) such other similar services;"
                                                                        c
     This definition, with reference to the taxable service, is dealt
with by Clause (zzd).

    5. The taxable services covered by Clause (zzq)
(commercial or industrial construction services) are defined in
sub-section 25(b) of Section 65 of the Act, which reads as              D
under:

     "(25b): commercial or industrial construction service
     means-
                                                                        E
     (a) construction of a new building or a civil structure or a
     part thereof; or

     (b) construction of pipeline or conduit; or

     (c) completion and finishing services such as glazing,             F
     plastering, painting, floor or wall tiling, wall covering and
     wall papering, wood and metal joinery and carpentry,
     fencing and railing, construction of swimming pools,
     acoustic applications or fittings and other similar services,
     in relation to building or civil structure; or
                                                                        G
     (d) repair, alteration, renovation or restoration of, or similar
     services in relation to, building or civil structure, pipeline
     or conduit, which is-

     (i) used, or to be used, primarily for; or                         H
    1070    SUPREME COURT REPORTS                  [2012) 10 S.C.R.


A       (ii) occupied, or to be occupied, primarily with; or

        (iii) engaged, or to be engaged, primarily in,

        commerce or industry, or work intended for commerce or
        industry, but does not include such services provided in
B       respect of roads, airports, railways, transport terminals,
        bridges, tunnels and dams;"

        6. The taxable services covered by Clause (zzzh)
    (construction of complex) are defined in sub-section 30 (a) of
c   Section 65 of the Act, which reads as under:

        "30(a): "construction of complex" means -

        (a) construction of a new residential complex or a part
        thereof; or
D
        (b) completion and finishing services in relation to
        residential complex such as glazing, plastering, painting,
        floor and wall tiling, wall covering and wall papering, wood
        and metal joinery and carpentry, fencing and railing,
E       construction of swimming pools, acoustic applications or
        fittings and other similar services; or

        (c) repair, alteration, renovation or restoration of, or similar
        services in relation to, residential complex."

F      7. The appellant, while paying service tax prior to 1.6.07
  under the above mentioned categories of taxable services,
  instead of paying full rate of service tax after availing of
  CENVAT credit of excise duties paid on inputs, had opted to
  claim the benefit of Notification No. 1/2006 -ST dated 1.3.06,
G whereby service tax was required to be paid only on 33% of
  the total value, subject to the condition of non availment of
  CENVAT credit on inputs, capital goods and input services.

        8. With effect from 01.06.2007, vide Notification No. 23/
    2007 dated 22.05.2007, sub-section (105) of Section 65 of the
H
 NAGARJUNA CONSTN. CO. LTD. v. GOVERNMENT1071
      OF INDIA & ANR. [ANIL R. DAVE, J.]

Act was amended and Clause (zzzza) was introduced. This              A
clause reads as follows:

    "(zzzza) Taxable service means any service provided or to
    be provided to any person, by any other person in relation
    to the execution of a works contract, excluding works
                                                                     8
    contract in respect of roads, airports, railways, transport
    terminals, bridges, tunnels and dams.

    Explanation:- For the purposes of this sub-clause, "works
    contract" means a contract wherein, -
                                                                     c
    (i) transfer of property in goods involved in the execution
    of such contract is leviabfe to tax as safe of goods, and

    (ii) such contract is for the purposes of carrying out, -

           (a) erection, commissioning or installation of plant,     D
           machinery, equipment or structures, whether pre-
           fabricated or otherwise, installation of electrical and
           electronic devices, plumbing, drain laying or other
           installations for transport of fluids, heating,
           ventilation or air-conditioning including related pipe    E
           work, duct work and sheet metal work, thermal
           insulation, sound insulation, fire proofing or water
           proofing, lift and escalator, fire escape staircases
           or elevators; or
                                                                     F
           (b) construction of a new building or a civil structure
           or a part thereof, or of a pipeline or conduit,
           primarily for the purposes of commerce or industry;
           or

           (c) construction of a new residential complex or a        G
           part thereof; or

           (d) completion and finishing services, repair,
           alteration, renovation or restoration of, or similar
           services, in relation to (b) and (c); or                  H
    1072    SUPREME COURT REPORTS                 [2012] 10 S.C.R.


A              (e) turnkey projects including engineering,
               procurement and construction or commissioning
               (EPC) projects;"

         9. Section 65A of the Act provides that the classification
    of taxable services shall be determined according to the terms
8
    of the sub-clauses of Clause (105) of Section 65 of the Act and
    when, for any reason, a taxable service is, prima facie,
    classifiable under two or more sub-clauses of Clause (105) of
    Section 65 of the Act, the classification shall be effected as
    follows:
c
               "(a) the sub-clause which provides the most specific
               description shall be preferred to sub-clauses
               providing a more general description;

D              (b) composite services consisting of a combination
               of different services which cannot be classified in
               the manner specified in clause (a), shall be
               classified as if they consisted of a service which
               gives them their essential character, in so far as this
               criterion is applicable;
E
               (c) When a service cannot be classified in the
               manner specified in clause (a) or clause (b) it shall
               be classified under the sub-clause which occurs first
               among the sub-clauses which equally merit
F              consideration."

       10. In exercise of the powers conferred under Sections 93
  and 94 of the Act, the Central Government introduced the Works
  Contracts (Composition Scheme for Payment of Service Tax)
G Rules, 2007 (hereinafter referred to as 'the 2007 Rules'). Under
  this scheme, an option of composition was offered @ 2% of
  the gross amount charged on the works contract. Prior to the
  composition, the effective tax rate under the other category of
  services would work out to be approximately 3.96% of the gross
H amount.
 NAGARJUNA CONSTN. CO. LTD. v. GOVERNMENT 1073
      OF INDIA & ANR. [ANIL R. DAVE, J.]

    11. Rule 3 of the 2007 Rules, being relevant, is extracted      A
below:

     "3. (1) Notwithstanding anything contained in Section 67
     of the Act and Rule 2A of the Service Tax (Determination
     of Value) Rules, 2006, the person liable to pay service tax    8
     in relation to works contract service shall have the option
     to discharge his service tax liability on the works contract
     service provided or to be provided, instead of paying
     service tax at the rate specified in Section 66 of the Act,
     by paying an amount equivalent to four per cent of the         C
     gross amount charged for the works contract.

     Explanation:- For the purpose of this rule, gross amount
     charged for the works contract shall not include Value
     Added Tax (VAT) or sales tax, as the case may be, paid
     on transfer of property in goods involved in the execution     D
     of the said works contract.

     (2) The provider of taxable service shall not take CENVAT
     credit of duties or cess paid on any inputs, used in or in
     relation to the said works contract, under the provisions of   E
     CENVAT Credit Rules, 2004.

    (3) The provider of taxable service who opts to pay service
    tax under these rules shall exercise such option in respect
    of a works contract prior to payment of service tax in
    respect of the said works contract and the option so            F
    exercised shall be applicable for the entire works contract
    and shall not be withdrawn until the completion of the said
    works contract."

      12. The appellant wanted to opt for the afore-stated          G
scheme but the department, through the Impugned Circular had
clarified that "Classification of a taxable service is determined
based on the nature of service provided whereas liability to pay
service tax is related to receipt of consideration. Vivisecting a
single composite service and classifying the same under two         H
    1074    SUPREME COURT REPORTS                 [2012) 10 S.C.R.


A   different taxable services depending upon the time of receipt
    of the consideration is not legally sustainable."

       13. In view of the above, the appellant, who had paid
  service tax prior to 01.06.07 for the taxable services, namely,
  erection, commissioning or installation service, commercial or
8
  industrial construction service or construction of complex
  service, was not entitled to change the classification of the
  single composite service for the purpose of payment of service
  tax on or after 01.06.07 and hence, was not entitled to avail of
C the Composition Scheme.

        14. In view of the fact that the appellant had classified the
  ongoing contracts entered into prior to 1.6.2007 under the
  category of 'works contract service' and had started
  discharging the service tax liability at the rates specified in the
D 2007 Rules, show cause notices were issued to the appellant
  for recovery of difference of service tax payable by it alongwith
  applicable interest and penalty.

        15. Aggrieved by the same, the appellant filed a Writ
E Petition before the High Court challenging the vires of the
  Impugned Circular. The High Court, while dismissing the
  petition, held that in respect of a works contract, where service
  tax had already been paid, no option to pay service tax under
  the Composition Scheme could be exercised. The High Court
  also held that the Impugned Circular (to the extent it was
F challenged i.e., in relation to Reference Code 097.03) was
  wholly in conformity with the provisions of Rule 3(3) of the 2007
  Rules and that the Impugned Circular merely reiterated the
  eligibility criterion specified in Rule 3(3) of the 2007 Rules. As
  per the provisions of the afore-stated Rule, for claiming benefit
G of paying service tax at the rate of 4% of the gross amount
  charged for the works contract instead of paying service tax at
  the rate specified in Section 66 of the Act, the appellant ought
  to have exercised its option before payment of service tax in
  respect of the works contract. The appellant had not exercised
H its option before payment of service tax and the taxable
 NAGARJUNA CONSTN. CO. LTD. v. GOVERNMENT1075
      OF INDIA & ANR. [ANIL R. DAVE, J.]

services, which were falling within Clau~es (zzd), (zzq) and           A
(zzzh) of Section 65 (105) of the Act, were falling within the newly
introduced Clause (zzzza) of Section 65(105) of the Act. In
these circumstances, the petition was dismissed by the High
Court.

     16. It is against the dismissal of the said petition that the
                                                                       8
present appeal has been filed by the appellant. The learned
counsel for the appellant submitted before us that upholding the
view taken by the High Court would result in gross
discrimination between assessees who had paid tax @3.96%
prior to 1.6.2007, as opposed to the contractors who are               C
similarly placed but did not pay any tax prior to 1.6.2007 and
who would now be paying tax at a lower rate.

     17. The learned counsel appearing for the appellant
submitted that the Impugned Circular is contrary to the                D
provisions of Rule 3 (3) of the 2007 Rules and Section 65 (105)
(zzzza) of the Act. He submitted that by virtue of the Impugned
Circular, the appellant and other similarly situated persons
would be deprived of the benefit under the Rules. He submitted
that under Rule 3 (3) of the 2007 Rules, the appellant is entitled     E
to opt for payment of 4% of the gross amount charged for the
works contract but by virtue of the Impugned Circular, the
appellant would not get an opportunity to avail of the option
provided under Rule 3 (3) of the 2007 Rules.

     18. Thereafter he submitted that by virtue of the Impugned        F
Circular, the respondent authorities cannot take away the benefit
given to the appellant under Rule 3 (3) of the 2007 Rules and
therefore, the Impugned Circular is bad in law.

     19. He thereafter submitted that Rule 3 (3) of the 2007           G
Rules cannot be interpreted in a way so as to deprive the
persons who had already paid tax under the old provisions. He
submitted that the appellant had already started making
payment @ 2% of the gross amount charged for the works
contract at the relevant time and, therefore, the appellant cannot     H
    1076    SUPREME COURT REPORTS                [2012) 10 S.C.R.


A   be constrained to change the method of payment of tax after
    1st June, 2007.

       20. In order to substantiate his submission that a circular
  cannot override a statutory provision, he relied on the judgments
  delivered in the cases of Tata Teleservices Ltd. v.
B Commissioner of Customs 2006 (1) SCC 746 and
  Commissioner of Central Excise, Bolpur v. Ratan Melting &
  Wire Industries (2008) 231 ELT 22. He, therefore, submitted
  that the Impugned Circular is bad in law and the High Court
  committed an error by not quashing the same and, therefore,
C the appeal deserves to be allowed and the Impugned Circular
  should be quashed.

        21. On the other hand, the learned Additional Solicitor
  General appearing for the respondents submitted that the view
o expressed by the High Court is just and proper. He submitted
  that reclassification is always permitted and he further submitted
  that by virtue of the amended legal provisions, after 1st July,
  2007, the classification had been amended and by virtue of the
  Impugned Circular the provisions of Rule 3(3) of the 2007 Rules
E have been explained.

       22. He submitted that the Impugned Circular is explanatory
  in nature and the appellant had preferred to challenge the
  Impugned Circular and not the provisions of Rule 3 (3) of the
  2007 Rules. Even without giving effect to the Impugned Circular,
F the provisions of the amended Rules would remain and force
  which would not permit the appellant to change the method with
  regard to payment of tax which was in vogue prior to 1st July,
  2007. He submitted that there was no dispute to the fact that
  the agreement with regard to the works contract had been
G entered into before 1st June, 2007 i.e. when the amended
  provision of Rule 3 (3) of the 2007 Rules was not in force. As
  the appellant had already paid service tax before 1st June, 2007
  on the basis which was applicable at the relevant time i.e.
  before 1st June, 2007, the appellant is not entitled to opt for
H
 NAGARJUNA CONSTN. CO. LTD. v. GOVERNMENT 1077
      OF INDIA & ANR. [ANIL R. DAVE, J.]

the scheme provided under the provisions of Rule 3 of the 2007      A
Rules.

     23. He lastly emphasized on the fact that reclassification
is always permitted and the State has a right to reclassify
services and only in pursuance of the said reclassification, the    8
provisions of Rule 3 (3) of the 2007 Rules would not apply to
the case of the appellant. He further added that not availing
CENVAT credit is not a relevant issue. He emphasized on the
fact that because of the reclassification, in the light of Rule 3
(3) of the 2007 Rules, the appellant cannot be permitted to avail   C
of the benefit of paying tax as per an option given under Rule
3 of the 2007 Rules.

     24. We have heard the learned advocates and have
considered the contents of the impugned judgment and the
provisions of the relevant rules.                                   D

    25. In our opinion the High Court did not commit any
mistake while upholding validity of the Impugned Circular.

     26. In our opinion the Impugned Circular has only explained
the contents of Rule 3 (3) of the 2007 Rules so as to provide       E
guidelines to the Revenue Officers.

     27. On perusal of Rule 3 (3) of the 2007 Rules it is very
clear that the assessee who wants to avail of the benefit under
Rule 3 of the 2007 Rules must opt to pay service tax in respect     F
of a works contract before payment of service tax in respect of
the works contract and the option so exercised is to be applied
to the entire works contract and the assessee is not permitted
to change the option till the said works contract is completed.

     28. In the instant case it is an admitted fact that the        G
appellant-assessee had already paid service tax on the basis
of classification of works contract which was in force prior to
1st July, 2007. In the circumstances, it cannot be said that the
appellant had exercised a particular option with regard to the
                                                                    H
    1078     SUPREME COURT REPORTS               [2012] 10 S.C.R.


A mode of payment of tax after 1st July, 2007 with regard to
  reclassified works contract. We are in agreement with the
  submissions made by the learned counsel appearing for the
  respondents that not availing of CENVAT credit is absolutely
  irrelevant in the instant case.
B
        29. We do not accept the submission of the learned
  counsel appearing for the appellant that the Impugned Circular
  is discriminatory in nature. Those who had paid tax as per the
  provisions and classification existing prior to 1st June, 2007 and
  those who opted for payment of tax under the provisions of Rule
C 3 of the 2007 Rules and paid tax before exercising the option
  belong to different classes and, therefore, it cannot be said that
  the Impugned Circular or the provisions of Rule 3(3) of the 2007
  Rules are discriminatory.

D      30. The appellant has not challenged the validity of Rule 3
  (3) of the 2007 Rules and, therefore, we do not go into the said
  issue. In our opinion, the Impugned Circular is not contrary to
  the Act or the statutory rules made thereunder and the Impugned
  Circular only provides guidelines as to how the provisions of
E Rule 3 (3) of the 2007 Rules are to be interpreted. Even if the
  Impugned Circular is set aside, the provisions of Rule 3 (3) of
  the 2007 Rules would remain and that would not benefit the
  appellant. In view of the above facts, we are of the view that
  the High Court did not commit any error while upholding the
F Impugned Circular and, therefore, we dismiss the appeal with
  no order as to costs.

    K.K.T.                                     Appeal dismissed.