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2014 (11) TMI 1021 - HC - Service TaxLegislative competence of the Parliament - Levy of service tax on air conditioned restaurant and hotel, inn, guest house, club or campsite under sub-clauses (zzzzv) and (zzzzw) of Clause (105) of Section 65 of Finance Act, 1994 - serving of food or beverage, including alcoholic beverages or both, in its premises - providing of accommodation for a continuous period of less than three months - Held that:- Bombay High Court in the case of Indian Hotels and Restaurants v. Union of India [2014 (4) TMI 447 - BOMBAY HIGH COURT ] has observed that, It is therefore, dear that a sales tax is on sale of goods. While selling, supply thereof is contemplated and covered by Article 366(29A)(f) of the Constitution of India. It does not mean that the service during the course of or while supplying the goods is taxed, but the tax is and remains on sale of goods. That is why the State Legislatures were held to be empowered to impose, levy, assess and recover tax on sale of articles of food and drink which have been termed as “goods.” Parliament had the legislative competence to levy Service tax on sub-clauses (zzzzv) and (zzzzw) of clause (105) of Section 65 of the Act. - Decided against the assessee.
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