APR PACKAGING LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner company, which has availed services of a Clearing and Forwarding Agents as also Transport agents, received a communication dated 07.11.2003 inviting its attention to this fact and also to the legal position that the petitioner being responsible in law to collect the service tax, it should have filed returns. By paragraph 5 of its communication, it was called upon to file return by due date.

(2.) In writ petition, the prayer is to declare that the proviso to Section 68 of the Finance Act, 1994, as amended in 2003 and Rule 7(A) of the Service Tax Rules, 1994, are unconstitutional.

(3.) After hearing Shri Naik, learned counsel for the petitioner, we find that the challenge as raised in Writ Petition was in the backdrop of law as expounded by the Hon'ble Apex Court in its judgment in the case of Laghu Udyog Bharati & Anr. vs. Union of India & Ors., reported at (1999) 6 SCC 418. The discussion in the said judgment in paragraphs 7 to 9 shows a conclusion by the Hon'ble Apex Court that service tax was being levied by reason of service offered and hence imposition was on the person rendering it.