M/S.Secunderabad Club,Rep.By ... vs Assistant Commissioner Of ...
2023 Latest Caselaw 1252 Tel

         THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
                                         AND
               THE HON'BLE SRI JUSTICE N. TUKARAMJI


                 WRIT PETITION No.28177 of 2011

ORDER: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)


        Heard Mr. S.Dwarakanath, learned Senior Counsel

for the petitioner and Mr. B.Narayana Reddy, learned

counsel for the respondents.

2. Petitioner in this case is M/s. Secunderabad Club

and relief sought for is a declaration that Section

65(105)(zzzzw) of the Finance Act, 1994 introduced by the

Finance Act, 2011 is unconstitutional.

3. This issue has been gone into by this Court in

W.P.No.19242 of 2006 (Jubilee Hills International Centre

v. Union of India). By the order dated 01.11.2022 this

Court held as follows:

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 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 Limited ((2019) 19 SCC 107) 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.

6. That being the position and following the decision of the Supreme Court in Calcutta Club Limited (supra), the Writ Petition is allowed.

4. Following the above, we allow the writ petition.

Miscellaneous applications pending, if any, shall

stand closed. However, there shall be no order as to costs.

______________________________________ UJJAL BHUYAN, CJ

______________________________________ N. TUKARAMJI, J 15.03.2023 vs