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Parliament has legislative competence to levy service tax under Acts, SC
Parliament has legislative competence to levy service tax under Acts, SC
All India Federation of Tax Practitioners challenged HC decision of upholding legislative competence of Parliament to levy service tax vide Finance Act, 1994 & Finance Act, 1998. SC held, Parliament has legislative competence to levy service tax by way of impugned Finance Acts of 1994 and 1998 under Entry 97 of List I on chartered accountants, cost accountants and architects. It is also fortified by Constitution (88th Amendment) Act, 2003.
Facts in Brief:
1. Present appeal filed by All India Federation of Tax Practitioners challenging the upheld legislative competence of Parliament to levy service tax vide Finance Act, 1994 and Finance Act, 1998.
2. Before HC held, service tax falls in Entry 97, List I of the Seventh Schedule to the Constitution.
3. Whether parliament is competent to levy service tax on practicing chartered accountants and architects having regard to Entry 60 List II of the Seventh Schedule to the Constitution and Article 276 of the Constitution.
SUPREME COURT HELD AS UNDER:
4. We find no merit in Civil Appeal No. 7128 of 2001 filed by All India Federation of Tax Practitioners and ors.. We hold that Parliament has legislative competence to levy service tax by way of impugned Finance Acts of 1994 and 1998 under Entry 97 of List I on chartered accountants, cost accountants and architects. We further hold that the above position now stands fortified by the Constitution (Eighty-eighth Amendment) Act, 2003 which has inserted Article 268A and Entry 92C which clearly indicates that Entry 60 of List II and Entry 92C of List I operate in different spheres. However, we make it clear that before us there is no challenge to the Constitutional validity of the said Constitution (Eighty-eighth Amendment) Act, 2003.
5. Accordingly, the civil appeal is dismissed with no order as to costs.
