Constitutional Validity of tax on service rendered in relation to lotteries promoted or marketed by Clients

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P. Muraleedharan, Managing Partner

v.

Union of India

(HC Kerala) Dated AUGUST 19, 2011

Issue: Whether the explanation introduced to section 65(19)(ii) read with section 65(105)(zzb) of the Finance Act 1994 providing for levy of tax on service rendered in relation to lotteries promoted or marketed by the clients is unconstitutional as claimed by the petitioners/assesee.
Held: After hearing the arguments of counsel for the petitioners and the Standing Counsel and on going through the later judgment rendered by the Chief Justice of the Sikkim High Court in Writ Petition(C) No.21/2009, we are unable to accept the challenge against the constitutional validity of the amendment.
In nutshell, we can say that it was held that contention of the assessee was not accepted and they had to pay tax.