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2015 (9) TMI 536 - HC - Service TaxWaiver of pre-deposit - Challenge to the Explanation to clause (ii) of Section 65(19) of the Finance Act, 1994 - promotion or marketing of games of chance, organised, conducted or promoted by the client - Held that:- It has been inter alia, held by the Sikkim High Court [2013 (11) TMI 1002 - SIKKIM HIGH COURT] that the activity of promotion, marketing, organising or in any other manner assisting in organising games of chance, including lotteries is an activity falling under “betting and gambling” which is the subject matter of Entry 62, List II of the Seventh Schedule to the Constitution of India. Consequently, it has been held that the State Legislature alone is competent to levy any tax on such activity under the said Entry 62, List II of the Seventh Schedule to the Constitution of India. It has been stated by the learned counsel for the petitioner that the explanation which has been impugned was earlier operating as part of the business auxiliary service till 30.062010 when it was deleted and new Section 65 (105) (zzzzn) was introduced as a specific service. - explanation which operated as a part of the business auxiliary service and is in pari materia with Section 65 (105)(zzzzn) is also liable to the struck down as being ultra vires the Constitution and beyond the legislative competence of Parliament - Notice issued. In the meanwhile, no coercive measures be taken. Also, non-compliance with the interim direction given by the Tribunal with regard to the pre-deposit would not, ipso facto, render the appeal filed by the petitioner liable to the dismissed by the Tribunal.
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