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2026 Supreme(Online)(Ker) 4874
IN THE HIGH COURT OF KERALA AT ERNAKULAM
ZIYAD RAHMAN A.A., J
THOPPIL CHITS PRIVATE LIMITED – Appellant
Versus
UNION OF INDIA – Respondent
WP(C) NO. 26516 OF 2014
For the Appellants/Petitioners: K.B.GANGESH
For the Respondents: O.M.SHALINA, THOMAS MATHEW NELLIMOOTTIL
Chitty transactions are exempt from service tax for periods prior to 2015.
Headnote:The petitioner challenged a notification under the Finance Act, 1994, regarding service tax liability for the chitty business. This Court previously decided in W.A.No.273 of 2018 that such transactions prior to 2015 are not subject to tax. The Court concluded the petitioner is not liable for service tax for the transactions before 2015.
| Table of Content |
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| 1. challenge to notification regarding service tax for chitty business. (Para 1) |
| 2. court observed prior rulings on service tax applicability. (Para 2) |
JUDGMENT
This writ petition is submitted by the petitioner challenging Ext.P3 notification. The petitioner is engaged in the Chitty business as per the provisions of Chit Funds Act , 1982 and the Kerala Chit Fund Rules , 2012. Dispute in this case is relating to the liability to pay service tax under the provisions of the Finance Act , 1994.
2. It is pointed out that the issue raised by the petitioner is already decided by this Court in W.A.No.273 of 2018 and conneced 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.
In such circumstances, the petitioner is entitled to the relief sought. Accordingly, this writ petition is disposed of in the light of the observation made by this Court in W.A.No.273 of 2018 by holding that the petitioner shall not be liable to pay service tax under the provisions of the Finance Act , 1994 for the transactions prior to the year 2015.
Sd/-
ZIYAD RAHMAN A.A.
