LAWS(SC)-2005-10-92

C K JIDHEESH Vs. UNION OF INDIA

Decided On October 27, 2005
C.K.JIDHEESH Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) By this Writ Petition, the Petitioner seeks to challenge a letter dated 9th July, 2001, issued by the Ministry of Finance as being arbitrary and discriminatory being in violation of Articles 14 and 19(1)(g) of the Constitution, and also violative of the Finance Act, 1994 as amended by the Act 14 of 2001. The Petitioner also prays for an Order directing the Respondent to bifurcate the gross receipts of processing of photographs into the portion attributable to goods and that attributable to services. The Petitioner claims that the Respondents must tax only that portion of the receipts, which is attributable to the services rendered.

(2.) Briefly stated the facts are that the Petitioner is the owner of one Ajantha Colour Lab, Kottakkal, Malappuram, Kerala. The Petitioner is running the business of developing and printing of colour photographic films. The Petitioner develops the negatives supplied by the customer and gives to the customer positive prints as per the order of the customer. By the impugned letter it has been clarified that the service tax would be on the entire amount recovered by persons like the Petitioner.

(3.) Mr. Mohd. Yusuf raises a preliminary objection. He submits that the Kerala Colour Labs Association had filed a Writ Petition in the Kerala High Court challenging the constitutional validity of the provisions in the Finance Act, which permits levy of service tax on services like those rendered by the Petitioner. He submits that that Writ Petition came to be dismissed by a Judgment of the Kerala High Court dated 31st January, 2002. He points out that against that Judgment two SLPs were filed. SLP (C) No. 11614 of 2002 was dismissed on 10th July, 2002. He points out that the second SLP bearing CC No. 6811 of 2002 filed by the Kerala Colour Labs Association was also dismissed on 8th January, 2003. He points out that in the synopsis attached to this Petition it is stated that the issues covered in this Writ Petition are already pending before this Court in the SLP filed by the Kerala Colour Labs Association. He submits that in view of the dismissal of the two SLPs challenging the constitutional validity of the provision levying service tax on persons like the Petitioner, this Petition should also be dismissed.