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IN THE HIGH COURT OF KERALA AT ERNAKULAM
A.MUHAMED MUSTAQUE, HARISANKAR V.MENON
Vengad Resorts & Retreats Limited – Appellant
Versus
Union of India, Represented by Secretary to Revenue Department, New Delhi – Respondent
| Table of Content |
|---|
| 1. challenging service tax on amusement activities. (Para 1 , 2 , 3) |
| 2. contention on legislative competence regarding taxation. (Para 5 , 6 , 10 , 11) |
| 3. court's analysis on constitutional aspects of tax imposition. (Para 8 , 18 , 30) |
| 4. determination of taxation jurisdiction between union and state. (Para 16 , 19 , 29) |
| 5. declaration of service tax imposition as unconstitutional. (Para 28) |
JUDGMENT :
HARISANKAR V. MENON, J.
1. This intra-court appeal is at the instance of the petitioner in the writ petition – a public limited company – stated to be engaged in running an ‘amusement park’, seeking to challenge the judgment of the learned Single Judge dated 22.03.2016, rejecting the challenge against the demand of ‘service tax’ on the activities carried out by the appellant.
2. The appellant points out that “admission to entertainment events or access to amusement facilities” by virtue of its inclusion under Section 66D(j) of the FINANCE ACT , 1994, under the negative list, was not liable to taxation. However, by the FINANCE ACT , 2015, sub-clause (j) to Section 66D was omitted, on account of which “admission to entertainment events or access to amusement facilities” was no
State legislative competence prevails over Union taxation on amusement activities per Entries 62 and 97 of List I and II of the Constitution; imposition of service tax deemed unconstitutional.
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