Tax Federation V/S Union of India

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FIRST INTERNAL ASSIGNMENT
TAXATION LAW

SUBMITTED BY: KONIKA JAIN PRN:15010143061
All India Federation Of Tax Practioners (Petitioner) v/s Union Of India & others(Respondent)

21st August 2007
(Date Of Judgement)

CITATION: (2007) 7 SCC 527 AIR 2007 SC-2990

NAME OF THE JUDGES:
S.H. Kapadia & B. Sudershan Reddy
FACTS:
* On 1st June 1998 finance bill was introduced in which Clause 119 of the Notes sought to substitute Sec 65 ,66 and 68 and amend the Section 67 of the finance act which was related to service tax in which the tax will be levied on services rendered by a practicing chartered accountant ,cost accountant and architect to a client in professional capacity at the rate of 5% .

* But on 3rd June 1998 , Bombay Chartered Accountant association made a representation to the central government objecting this bill but then also the bill was passed in August 1998 and mainly it came into force on 1st April 1998.

* Then on 7th October 1998 ,Union of India issued a notification in which taxable services are exempted other than accounting and auditing and than within the period of ten days i.e on 16th October ,1998 issued another notification in which the scope of exemption was reduced.

* And therefore, the All India Federation of Tax has filed a written petition in Bombay High Court challenging the validity of the levy of service tax.

PROCEDURAL HISTORY:
This is an appeal which was filed against the judgement given by Bombay High Court on 22nd Feb ,2001 that :

“the Parliament has the legislative competence to levy the service tax vide Finance Act 1995 and 1998 as Service tax falls in Entry 97 , list 1 of the Seventh schedule to the Constitution”

ISSUE:

* The question which arises for determination in this civil appeal concerns the constitutional status of the levy of service…...

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