Service Tax on AC Bar Restaurants & Hotels is Unconstitutional: Kerala HC

The Kerala High Court has held that the levy of Service Tax on AC Bar Restaurants and Hotels
providing short term accommodation as Unconstitutional and beyond the Legislative Competence of the Parliament. It contends that the levy by the Central Government transgress upon the subject matter falling under Entry 54 and Entry 62 respectively of the List II (State List) of the Seventh Schedule of the Constitution and therefore beyond the legislative competence of the Parliament.