VTM LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) BOTH the Writ Petitions were filed by the Society challenging vires of Section 66A of the Finance Act, 1994 as well as the showcause notice issued pursuant to the said provision. Pending writ petition, this Court did not grant any Stay.

(2.) ON notice from this Court in W.P. (MD) No.351 of 2009, a counter affidavit, dated 13.10.2009, has been filed, justifying the showcause notice and the vires of the Section 66A. However, the issue raised in the writ petition is no longer res-integra. The Division Bench of the Bombay High Court had an occasion to deal with the provision in Indian National Ship Owners Association Vs. Union of India reported in 2009 (13) STR 235 (Bom.) The matter was taken to the Supreme Court in a Special Leave to appeal Civil No.18932/2009 by the Union of India and the Supreme Court had dismissed the said Leave Appeal.

(3.) ACCORDINGLY, it may be critically examined in pending disputes as to whether the service was received in India or outside India and appropriate action may please be taken for resolution of such disputes.