MERCUTY LABORATORIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner has challenged validity of rule 2 of Service Tax (Eighth Amendment) Rules, 1997. The petitioner has also consequently challenged the impugned show-cause notice dated 16-3-1999 as at Annexure 'F' to the petition.

(2.) BY amendment brought in rule 2 of Service Tax Rules, 1994 by virtue of Service Tax (Eighth Amendment) Rules, 1997, the following addition was made in sub-rule (i)i in clause (d):-

(3.) WE have perused the petition and the decision cited by the counsel for the petitioner. It clearly emerges that the very rule that the petitioner has challenged in this petition came up for consideration before the Apex Court in the case of Laghu Udyog Bharati vs. Union of India (supra). The rule has been declared ultra vires the Act. There is nothing on the record suggesting that the impugned show-cause notice was not on the basis of such amended rule.