INSTITUTION OF VALUERS Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition under Article 226 of the Constitution of India, the petitioner has posed the following question for determination by this Court : -

(2.) The facts as appearing in the petition are that the petitioner No.1 (hereinafter referred to as "the petitioner") is the Gujarat Chapter of the Institution of Valuers representing the interest of about 200 members. The petitioner No.2 is a Government approved valuer and authorized signatory of the petitioner No.1.

(3.) "Service tax" was introduced for the first time in the year 1994 by making provisions in Chapter V of the Finance Act, 1994 (hereinafter referred to as "the Act"). By virtue of Section 84 of the Finance Act, 1997, Sections 65, 66 and 68 of the Act came to be substituted and Section 67 of the Act was amended so as to impose and levy a tax on services rendered inter alia by a "consulting engineer" to a client in relation to one or more disciplines of engineering. At the relevant time when the petition came to be filed, service tax was sought to be levied on the enumerated services including that rendered by a "consulting engineer" as stated above at the rate of 5% on the gross amount charged to the client.