ALL INDIA FEDERATION OF TAX PRACTIONERS v. UNION OF INDIA [(2007) 10 STT 166 (SC)]

Tax on services rendered by professionals – Whether constitutional - Held, Yes. The instant appeal was filed by the appellant before the Supreme Court Challenging the legislative competence of the Parliament to levy service tax on Practicing Chartered Accountants, Cost Accountants and Architects under Article 246(1), read with Entry 97 of List I of the Seventh Schedule to the Constitution on the
ground that word ‘Profession’ in Entry 60 of List II is nothing but service and, therefore, levy of service tax came within the competence of State Legislature alone. Decision : Appeal dismissed.