Jubilee Hills International ... vs Union Of India Another
2022 Latest Caselaw 5560 Tel

    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