The Hindu : Karnataka / Bangalore News : ‘State can’t levy service tax on Central units’

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Wednesday, Mar 25, 2009
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Karnataka

Karnataka - Bangalore

‘State can’t levy service tax on Central units’

Staff Reporter

BANGALORE: The Karnataka High Court on Tuesday said the State had no authority or constitutional right to levy service tax on Central Government undertakings or units.

Justice N.K. Patil passed the order on a petition by the General Post Office (GPO), Bangalore, which had challenged the levy of service tax by the Bangalore Water Supply and Sewerage Board (BWSSB) on a borewell it had drilled.

The Centre submitted to the High Court that only Parliament has the right or competence to levy service tax on its undertakings. It said neither the Constitution nor any other provision in a statute empowered a State or its undertakings to levy such a tax on a Central undertaking.

Justice N.K. Patil upheld the Central Government contention and quashed a BWWSB notification, levying service tax on the GPO.

Upheld

Justice Ashok B. Hinchigeri on Tuesday upheld a note by then Muzrai Minister in 2006 recommending the names of nine persons as members of the management committee to the famous Kukke Subramanya Temple at Kukke in Dakshina Kannada district.

The appointment of the nine persons was challenged by M. Sanjeeva Gowda, who said the committee could be constituted only after the authorities conducted an interview of the candidates.

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