POLYSPIN EXPORTS LTD. Vs. UNION OF INDIA (UOI)

JUDGEMENT

(1.) In all these writ petitions, the Petitioners prayed for declaration, declaring that Explanation to Section 65(105) of the Finance Act, 1994, read with amended Rule 2(1)(d)(iv) of the Service Tax Rules, 1994, coming into effect from 16-6-2005 is ultra vires Sections 64, 65, 66, 67 and 68 of the Finance Act, 1994 and as a result Service Tax cannot be extended to such services rendered by service providers from and outside India even though the service recipients are located in India.

(2.) In some of the writ petitions the Petitioners also challenged the show cause notice issued under explanation to Section 65(105) of the Finance Act, 1994, read with amended Rule 2(1)(d)(iv) of the Service Tax Rules, 1994.

(3.) As the issue is relating to the vires of the explanation to Section 65(105) of the Finance Act, 1994, read with amended Rule 2(1)(d)(iv) of the Service Tax Rules, 1994, there is no need to go into the facts of the case.