No Service Tax on Service by Indian Tour Operators in foreign currency to foreign tourists

Introduction: 1. The writ petition by the Indian Association of Tour Operators, seeks a declaration that Rule 6A of the Service Tax Rules, 1994 (‘ST Rules’), concerning ‘Export of services‘ is ultra vires the Finance Act1994 (‘FA’). The validity of Section 94 2 (f) of the FA is also challenged on the ground that it gives unguided and uncontrolled power to the central government to frame rules regarding ‘provisions for determining export of taxable services’. 2. The members of the Petitioner, who are Indian tour operators, are engaged in the ...