AIRLINES AGENTS ASSOCIATION Vs. UNION OF INDIA

JUDGEMENT

(1.) THESE writ petitions are filed by Airlines Agents Association, Chennai and some Air Travel Agents. The petitioners pray for a writ of declaration or any other appropriate writ or order in the nature of writ by declaring the provisions contained in Section 65(3) and Section 67(k) of the Finance Act, 1994 as amended in the year 1996 and Rule 2(d)(viii) of Service Tax Rules as amended in the as unconstitutional and void.

(2.) DURING the year 1994, the then Union Finance Minister proposed to levy tax on the "services" provided by the non-life insurance agents, stock brokers, telephone bills, etc. By and by, other service sectors like "consulting engineers", "customs house agents", "steamer agents", "clearing and forwarding agents", "advertising agencies" and many others came to be added and brought into the tax-net. The services provided by the "Air Travel Agents" came to be brought into the tax-net by way of an amendment of Section 65 of the Finance Act. The "charging section" is Section 66(3) while the "measure of tax" is pro vided by Section 67(k).

(3.) MR. C. Natarajan, the learned senior counsel while arguing on the first proposition contended that Section 67(k) which defines the "Value of taxable services provided by the air travel agents" is inconsistent with the provisions of Section 65(3) and more particularly Section 65(48)(1) as also Section 66(3) of the Act.