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2013 (6) TMI 53 - HC - Service TaxLevy of service tax on Chit Fund - cash management - constitutional validity - held that:- no provision of law is under challenge in any of these writ petitions; particularly the amendment brought about to Section 65(12)(a)(v) of the Finance Act, 1994, in the year 2007. This being the position, the decisions cited from the part of the respondents, as to the way in which ‘Constitutional validity’ of a provision is to be examined and interpreted and on such other incidental aspects are not necessary, to be considered or dealt with. However, having cited the above decisions, it is worthwhile to have a reference to some of them as well in a different context. It has been made clear by the Apex Court in paragraph 21 of the judgment reported in Kasinka Trading and Another v. Union of India and Another (1994 (10) TMI 64 - SUPREME COURT OF INDIA) that ‘the power to exempt includes the power to modify or withdraw the, same’. Public Interest - held that:- It has been further observed in paragraph 23, that withdrawal of exemption in “Public Interest” is a matter of policy and Courts would not bind the Government to its policy decisions for all times to come, irrespective of the satisfaction of the Government, that a change in the policy was necessary in “Public Interest”. As observed, Courts do not interfere with the fiscal policy where the Government acts in “Public Interest”. The scope of interference especially with regard to taxing laws has been explained by another Constitution Bench of the Apex Court in Federation of Hotel & Restaurant v. Union of India [1989 (5) TMI 50 - SUPREME Court] more particularly in paragraphs 46, 47 and 48. In Karnataka Bank Ltd. v. Stale of Andhra Pradesh and Others [2008 (1) TMI 605 - SUPREME COURT OF INDIA], it has been held that, any interpretation which renders a legislation unconstitutional, is to be avoided. It difficult to agree with the proposition mooted by the petitioners in these writ petitions and most respectfully disagrees with the view expressed by the Division Bench of the High Court of Andhra Pradesh [2008 (7) TMI 227 - HIGH COURT ANDHRA PRADESH]. This Court holds that the writ petitions are devoid of any merit - Decided against the assessee.
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