Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2008 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (12) TMI 148 - HC - Service TaxConstitutional validity of service tax on equipment leasing and hire purchase activity – the decision of the Supreme Court in Bharat Sanchar Nigam Ltd. applies inasmuch as levy of sales tax is possible on sale of goods involved in the transaction while service tax can be levied on the service charges received in the transaction. - Since incidence of service tax is not on sale of goods or deemed sale of goods pertaining to leasing and hire-purchase transactions covered by clauses (c) and (d) of Article 366(29A) of the Constitution of India, Parliament is competent to levy service tax on banking and other financial services including equipment leasing and hire-purchase - The provisions are not discriminatory and violative of Articles 14 and 19(1)(g) of the Constitution of India since banking companies in the Public Sector are also liable to pay service tax on financial leasing service including equipment leasing and hire-purchase. Notification no. 4/2006 excludes the value of sale or deemed sale by way of exemption.
|