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2014 (9) TMI 254 - HC - Service TaxLevy of Service tax on lottery tickets - Writ petition against letters issued from the Mumbai Office - territorial jurisdiction of the SIKKIM HIGH COURT - Held that - In Writ Petition in the case of . Future Gaming Solutions India Private Limited 2013 (11) TMI 1003 - SIKKIM HIGH COURT , a Division Bench of this Court has made a declaration that the transaction in the lottery tickets are not liable to service tax under the provisions of the Finance Act, 1994, as amended by the Finance Act, 2012 and the three communications issued in the said matter were quashed. It is not disputed that in the instant case the agreement had taken place in the State of Sikkim and the other events to run the lottery business had also taken place in the State of Sikkim as in the matter of M/s. Future Gaming. - the present writ petition is squarely covered by the judgment of this Court in Writ Petition No.32 of 2012 and it can be allowed on the same terms. - Decided in favor of assessee.
Issues involved:
1. Territorial jurisdiction for maintaining the writ petition. 2. Liability of service tax on lottery ticket transactions under the Finance Act, 1994. 3. Validity of communications issued by the Mumbai Office. Analysis: Issue 1: Territorial Jurisdiction The petitioner argued that the matter was covered by a previous judgment and should be allowed. The respondents contended that since the impugned letters were issued from the Mumbai Office, the cause of action arose in the territorial jurisdiction of the Mumbai High Court, making the writ petition not maintainable. The court referred to a previous case and noted that the agreement and lottery events took place in Sikkim, leading to the rejection of the objection based on lack of territorial jurisdiction. The court upheld that the objection lacked merit and rejected it based on the location of the agreement and lottery operations in Sikkim. Issue 2: Liability of Service Tax Referring to a Division Bench judgment, the court declared that transactions involving lottery tickets were not liable to service tax under the Finance Act, 1994, as amended by the Finance Act, 2012. The court quashed three communications related to the matter. It was emphasized that the agreement and lottery business operations occurred in Sikkim, similar to a previous case, leading to the rejection of objections raised by the respondents regarding the liability of service tax on lottery transactions. The court allowed the writ petition based on the precedent set by the previous judgment. Issue 3: Validity of Communications The court quashed three communications issued from the Mumbai Office, citing the lack of liability for service tax on lottery transactions under the Finance Act, 1994. The communications were dated 16.01.2013, 18/02/2013, and 07.07.2009. The court made a declaration that these communications were invalid and also mentioned that there would be no order as to costs in this matter. This detailed analysis covers the territorial jurisdiction, service tax liability, and validity of communications as addressed in the judgment delivered by the Sikkim High Court.
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