CONSTITUTIONAL VALIDITY OF SERVICES TAX ON FINANCIAL LEASING SERVICES

Service tax imposed by section 66 of the Finance Act, 1994 on the value of taxable services referred
to in section 65(105)(zm), read with section 65(12) of the said Act, insofar as it relates to financial
leasing services including equipment leasing and hire-purchase is within the legislative competence
of the Parliament under Entry 97, List I of the Seventh Schedule to the Constitution.