Constitutional validity of the Parliament to levy Service Tax on financial leasing services including equipment leasing and hire-purchase

Association of Leasing & Financial Service Companies Vs. Union of India and others (Supreme Court), CIVIL APPEAL NO. 9344 OF 2010 (Arising out of S.L.P. (C) No. 23149 of 2009), Dated- October 26, 2010 Contentions of the Appellant The Appellant put forth the following contentions: • The Constitution has conferred exclusive power to the States to levy Sales Tax by expanding Entry 54, List II by insertion of Article 366(29A). Thus, it is not open to the Parliament to tax the hire-purchase and leasing transactions under Entry 97 of List I. • The Madras High Court erroneously assumed that ...