Lottery distributors not liable to pay service tax to Centre: SC
New Delhi (PTI): Lottery distributors are not liable to pay service tax to the Union government, the Supreme Court held on Tuesday while dismissing an appeal of the Centre on the issue.
A bench comprising Justices BV Nagarathna and NK Singh did not agree to the appeal of the Centre against the Sikkim High Court judgement.
“Since there is no agency in the relationship, the respondents (lottery distributors) were not liable to pay service tax. However, the respondents will continue to pay the gambling tax levied by the state under Entry 62, List II of the Constitution,” Justice Nagarathna said while pronouncing the verdict.
"Service tax is not leviable on the transactions between the purchaser of the lottery tickets and firm…In view of the aforesaid discussions, we find no merit in the appeals filed by the Union of India and others. Hence, these appeals are dismissed," the bench said.
Upholding the Sikkim High Court verdict, the top court said it is only the state government that can impose taxes on lotteries and not the Centre.
The Centre had contended that it was entitled to impose service tax.
The top court said the high court was right in holding that the lottery comes within the expression "betting and gambling" which is part of Entry 62 of the state list of the Constitution and only the state can impose the tax.
The Centre had moved the top court in 2013. The high court judgement had come on a plea filed by lottery firm Future Gaming Solutions Pvt Ltd.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Murder case accused dies in police custody due to 'illness'
Bengaluru (PTI): A 45-year-old murder case accused allegedly died due to illness while in police custody, police said on Thursday.
The deceased was arrested by the Mahalakshmi Layout police on April 28 in connection with a conspiracy to rob money and gold ornaments from a woman living alone by causing a fatal accident.
“In this case, one accused was arrested and produced before the court for further investigation, and police custody was obtained. On May 2, at around 2:00 a.m., the accused complained of stomach pain. He was immediately admitted as an inpatient atVictoria Hospital.
On May 5, at around 9:20 a.m., the doctors at Victoria Hospital informed that the accused had died after failing to respond to treatment,” police said in a release.
The accused had a history of long-term illness, it said. “While he was in police custody, he became unwell due to stomach pain and was admitted to Victoria Hospital for treatment. He died after failing to respond to treatment.”
According to police, against this person, three cases were registered at Seshadripuram Police Station, one at Mahalakshmi Layout Police Station, one at High Grounds Police Station, and one at Rajagopal Nagar Police Station.
Earlier, a rowdy sheet had been opened against him at Seshadripuram Police Station.
