THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
AND
THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY
WRIT PETITION No.19242 of 2006
ORDER: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)
Heard Mr. Rohan Aloor, learned counsel representing
Mr. Ch.Pushyam Kiran, learned counsel for the petitioner and
Mr. A.Rama Krishna Reddy, learned counsel for respondent
Nos.1 & 2.
2. In this writ petition, petitioner has challenged constitutional validity of Clause (25a) and Clause (105) (zzze) of Section 65 of the Finance Act, 1994.
3. Petitioner before us is a Press Club registered under Section 5 of the Andhra Pradesh (Telangana Area) Public Societies Registration Act, 1350 Fasli. It is an association of persons, each member contributing funds by means of entrance fee, periodical subscriptions and other charges, out of which expenses of the club are met. The club 2 HCJ & CVBRJ W.P.No.19242 of 2006 is a social and recreational association of the members and is not meant for profit or gain.
4. In the hearing today, we have been informed that Supreme Court in State of West Bengal v. Calcutta Club Limited1 has upheld the view that the said provisions are unconstitutional. We may mention that High Court of Jharkhand in W.P(T).No.2388 of 2007, decided on 15.03.2012 had declared such provisions as unconstitutional. Following the judgment of the High Court of Jharkhand, Gujarat High Court by the judgment dated 25.03.2013 declared the aforesaid provisions to the extent that the said provisions pertain to levying of service tax on services provided by the club to its members to be ultra vires.
5. In Calcutta Club Limited (supra), Supreme Court has approved the views taken by the Jharkhand High Court and Gujarat High Court.
1 (2019)19 SCC 107
3 HCJ & CVBRJ
W.P.No.19242 of 2006
6. That being the position and following the decision of the Supreme Court in Calcutta Club Limited (supra), the Writ Petition is allowed.
7. However, there shall be no order as to costs.
8. Miscellaneous applications pending, if any, in this Writ Petition shall stand closed.
__________________________ UJJAL BHUYAN, CJ ___________________________ C.V.BHASKAR REDDY, J Date: 01.11.2022 KL