Dr. AR. LAKSHMANAN, J. - (1.) The present appeal is directed against the judgment and order dated 30-4-2001 in Writ Petition No. 1617 of 1998 passed by the High Court of Judicature at Madras whereby the Division Bench of the Madras High Court dismissed the writ petition of the appellant-Association and held Sections 66, 67(o) of the Finance Act, 1994 and Rule 2(1)(d)(ix) of the Service Tax Rules, 1994 and other provisions related to Kalyana Mandapams and Mandap-Keepers to be intra vires of the Constitution of India.
(2.) The appellant is an Association of various Kalyana Mandapams bearing Registration No. 513 of 1992. The appellant-Association has been formed to protect the interest of the owners of Kalyana Mandapams in the city of Madras and elsewhere in the State of Tamil Nadu. The owners of Kalyana Mandapams/Mandap-Keepers let out mandapas/premises to the clients. In addition to letting out the Kalyana Mandaps, the Mandap Keepers also provide other facilities such as catering, electricity, water etc. to their clients.
(3.) Service Tax was introduced in India vide the Finance Act, 1994. Service Tax is legislated by the Parliament under the residuary entry i.e. Entry 97 of List I of the Seventh Schedule of the Constitution of India. The service tax provisions have the following scheme. (i) Section 65 of the Act provides for taxable services; (ii) Section 66 of the Act provides for the charge of service tax by the person designated as "the person responsible for collecting the service tax" for the Government; (iii) Section 67 of the Act provides for the value of taxable service which is to be subjected to 5% Service tax; and (iv) Section 68 of the Act provides for the collection and payment mechanism for service tax. ;