Abstract

http://ssrn.com/abstract=2292044
 


 



No Service Tax on ‘Services in Relation to Chit-Funds’: Revisiting Delhi High Court Decision in ‘Delhi Chit Fund Association’


Tarun Jain


Supreme Court of India; London School of Economics & Political Science (LSE); National Law University Jodhpur (NLUJ)

July 1, 2013

Excise and Customs Reporter, Vol. 198, pp. 1SF-16SF, July 2013

Abstract:     
In a recent decision and the first of its kind in the context of levy of service tax under the ‘negative list regime’, the Delhi High Court in ‘Delhi Chit Fund Association v. Union of India’ has declared as invalid the levy of service tax on ‘services in relation to chit-fund’. While such declaration of a levy as invalid is not unprecedented, the reasoning employed in the decision to conclude such invites a closer scrutiny in as much as the decision effectively restates the otherwise clear statutory provision. The decision also does not dwell in detail upon the defense put for by the tax-administration in support of their stand, in particular the principle of ‘ex abundanti cautela’, which in the view of this author provides a firm answer to the conundrum sought to be addressed by the decision. In the light of this and other factors this article makes a critical analysis of this recent decision.

Number of Pages in PDF File: 16

Keywords: Service Tax, India, Chit Funds, Legal Interpretation, Fiscal statutes, Ex abundanti cautela

JEL Classification: H21, H25, K34, K49

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Date posted: July 24, 2013  

Suggested Citation

Jain, Tarun, No Service Tax on ‘Services in Relation to Chit-Funds’: Revisiting Delhi High Court Decision in ‘Delhi Chit Fund Association’ (July 1, 2013). Excise and Customs Reporter, Vol. 198, pp. 1SF-16SF, July 2013. Available at SSRN: http://ssrn.com/abstract=2292044

Contact Information

Tarun Jain (Contact Author)
Supreme Court of India ( email )
New Delhi
India
London School of Economics & Political Science (LSE)
London
United Kingdom
National Law University Jodhpur (NLUJ)
Jodhpur
India
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