M/S Indian Association Of Tour Operators vs. Union Of INDIA & Anr.

W.P.(C)/5267/2013HC DelhiGSTCNR DLHC01125158201331 August 2017Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH26 pages

For Petitioner: Mr. J.K. Mittal & Mr. Rajveer Singh, AdvocatesFor Respondent: Mr. Anuj Aggarwal and Mr. Gaurav Singhal, Advocates for Respondent Nos.1 & 2. Mr. Amit Bansal and Mr. Amit Kulshrestha, Advocates for Respondent No.3

AI SummaryAllowed

Held

The Court declared Rule 6A(1) read with Section 6A(2) of the ST Rules invalid as it improperly delegated the determination of taxability of tour operator services. It held that Section 94(2)(f) and (hhh) did not empower the government to decide the taxability of services provided outside the taxable territory.

Facts

The Indian Association of Tour Operators challenged Rule 6A of the Service Tax Rules, 1994, and Section 94(2)(f) of the Finance Act, 1994, arguing they were ultra vires. The dispute concerned the taxability of services provided by Indian tour operators to foreign tourists between July 1, 2012, and July 1, 2017.

Key Issues

Whether the delegated legislation (Rule 6A) improperly encroached upon the legislative function of Parliament by determining the taxability of services, and whether Section 94(2)(f) provided unguided power to the government.

Sections Cited

Section 94(2)(f), Section 6A(1), Section 6A(2), Section 66C

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

WP (C) 5267 of 2013 Page 1 of 26 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) No. 5267 of 2013 Reserved on: August 03, 2017 Date of decision: August 31, 2017 INDIAN ASSOCIATION OF TOUR OPERATORS ..... Petitioners Through: Mr. J.K. Mittal & Mr. Rajveer Singh, Advocates. versus UNION OF INDIA & ANR. ..... Respondents Through: Mr. Anuj Aggarwal and Mr. Gaurav Singhal, Advocates for Respondent Nos.1 & 2. Mr. Amit Bansal and Mr. Amit Kulshrestha, Advocates for Respondent No.3. CORAM: JUSTICE S.MURALIDHAR JUSTICE PRATHIBA M. SINGH

J U D G M E N T

Dr. S. Muralidhar, J.:

Introduction

This writ petition by the Indian Association of Tour Operators, seeks a declaration that Rule 6A of the Service Tax Rules, 1994 (‘ST Rules’), concerning ‘Export of services’ is ultra vires the Finance Act 1994 (‘FA’). The validity of Section 94 2 (f) of the FA is also challenged on the ground that it gives unguided and uncontrolled power to the central government to frame ru

The judgment continues below.

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