DELHI CHARTERED ACCOUNTANTS Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner is an association of Chartered Accountants, registered as a society in Delhi. The matter arises under the service tax provisions which were brought into force by the Finance Act, 1994. The prayer in this petition is for (a) quashing of the circular No.158/9/2012- ST dated 08.05.2012 and circular No.154/5/2012-ST dated 28.03.2012 as null and void and ultra vires the Constitution of India and/ or the provisions of the Finance Act, 1994; (b) issuance of a writ or order or direction in the nature of a writ declaring that under the provisions of the Finance Act, 1994, the taxable event is the rendition of the service and accordingly the rate of tax payable is the rate in force on the date of providing the service.

(2.) THE petition came to be filed in this manner. The Finance Act, 1994 introduced the levy of service tax for the first time in India. Section 66 provided for the charge of service tax. Section 66A provided for the charge of service tax on services received from outside India. Section 67 provided for the valuation of taxable services for the purpose of charging service tax. This section underwent certain changes under the Finance Act, 2006 w. e. f. 18.04.2006 but we are not concerned with them. Section 68 provided for the payment of service tax. There are other procedural provisions to give effect to the levy and collection of service tax with which we are not concerned. Section 93 conferred power upon the Central Government to grant exemption from the levy of service tax. Section 94 conferred power upon the Central Government to make rules for carrying out the provisions of Chapter V of the Finance Act, 1994.

(3.) RULE 4 provided as follows: -