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2011 (8) TMI 653 - HC - Service TaxConstitutional Validity of Levy of Service tax on lotteries promoted and marketed by clients - Held That:- The very objective of the amendment which is to get over the decision of the Supreme Court in Martin Lottery Agencies Ltd.'s and since the amendment has achieved the objective of levying tax on service rendered in relation to lottery, it has to be upheld. 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.. Marketing of lottery as taxable services - lottery tickets are purchased by the petitioners at discounted price and they in turn sell the same by sharing the discount availed by them to retail dealers. - Held that:- Discount or commission received by the petitioners is nothing but consideration for service rendered to the promoter or organiser of the lottery. Moreover without the service rendered by the distributors namely, the lottery tickets will not reach the ultimate customers who are the participants in the draw. Thus liable to Service Tax.
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