DELHI CHIT FUND ASSOCIATION Vs. UNION OF INDIA

JUDGEMENT

(1.) THE short question which arises in this writ petition is whether the provision of services in relation to conducting a chit business is a taxable service for the purposes of section 65B(44) of the Finance Act, 1994 inserted w. e. f. 1st July, 2012.

(2.) THE petitioner is an association of chit fund companies based in Delhi. By a notification No.26/2012 issued on 20th June, 2012, the Department of Revenue, Ministry of Finance of the Government of India exempted: - "the taxable service of the description specified in column (2) of the Table below, from so much of the service tax leviable thereon under section 66B of the said Act, as is in excess of the service tax calculated on a value which is equivalent to a percentage specified in the corresponding entry in column (3) of the said Table, of the amount charged by such service provider for providing the said taxable service, unless specified otherwise, subject to the relevant conditions specified in the corresponding entry in column (4) of the said Table, namely: - <FRM>JUDGEMENT_3948_ILRDLH23_2013.htm</FRM>

(3.) SECTION 66B provided for the charge of service tax on and after the Finance Act, 2012. That section is as follows: -