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2026 Supreme(Online)(Ker) 2160
IN THE HIGH COURT OF KERALA AT ERNAKULAM
ZIYAD RAHMAN A.A., J
SUDRIDAM KURIES PVT.LTD – Appellant
Versus
UNION OF INDIA – Respondent
WP(C) NO. 21520 OF 2015
For the Appellants/Petitioners: SHRI.K.B.GANGESH, SMT.ATHIRA A.MENON
For the Respondents: SRI.THOMAS MATHEW NELLIMOOTTIL, SC, CENTRAL BOARD OF EXCISE & CUSTOMS, SRI.RAJESH. K.RAJU
Chitty transactions are exempt from service tax prior to 2015 under the Finance Act, 1994.
Headnote:The petitioner, Sudridam Kuries Pvt. Ltd., challenges service tax liability under the Finance Act, 1994, for transactions prior to 2015, referencing this Court's prior decision in Writ Appeal No. 273/2018. The Court finds in favor of the petitioner, ruling that 'the chitty transaction cannot be subjected to tax as per the Finance Act, 1994, for the period prior to 2015'. Thus, the petitioner is entitled to the sought relief.
| Table of Content |
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| 1. petitioner's business is regulated by the chit funds act and challenges service tax liability. (Para 1) |
| 2. court holds chitty transactions are exempt from tax prior to 2015. (Para 2) |
JUDGMENT
This writ petition submitted by the petitioner, which is engaged in the business of Chitty under the provisions of The Chit Funds Act , 1982 and the Kerala Chit Funds Rules, 2012. The dispute in this case pertains to the liability of service tax payable by the petitioner under the provision of Finance Act , 1994. Exhibit P2 is the notification which is under challenge in this regard.
2. As far as the issue raised by the petitioner in this case is concerned, it is pointed out that, the same is already decided by this Court in Writ Appeal No.273/2018 and connected cases, wherein, it was held that, the chitty transaction cannot be subjected to tax as per the Finance Act , 1994, for the period prior to 2015. It is an undisputed case that all the transactions which are the subject matter in this writ petition, are pertaining to the period prior to 2015 and therefore, the petitioner is entitled to the reliefs sought .
Accordingly this writ petition is disposed of, in the light of the observations made in this Court in W.A. No. 273/2018, by holding that, the petitioner shall not be liable to be subject to the service tax under the provisions of the Finance Act , 1994, prior to 2015.
Sd/-
ZIYAD RAHMAN A.A.
JUDGE sjb/14.01.2026 APPENDIX OF WP(C) NO. 21520 OF 2015 PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF NOTIFICATION NO.20/2012-ST DATED 5-
