New Delhi, Feb. 11 -- In a significant judgment, the Supreme Court on Tuesday upheld the Sikkim High Court's decision striking down Clause (zzzzn) of Section 65(105) of the Finance Act, 1994, as inserted by the Finance Act, 2010, declaring it unconstitutional.
The contentious clause sought to introduce "promotion, marketing, organising, or assisting in organising games of chance, including lottery" as a new category of taxable service.
The petitioners, private companies engaged in the sale of paper and online lottery tickets organized by the Government of Sikkim, had challenged the clause on the grounds that their activities did not constitute a "taxable service." They argued that conducting lotteries falls under "betting and gambling," ...