Sale Of Lottery Tickets Not ‘Auxiliary Service’, No Service Tax Payable: Kerala High Court
Sale Of Lottery Tickets Not ‘Auxiliary Service’, No Service Tax Payable: Kerala High Court
The Kerala High Court has held that no service tax is payable on sale of lottery tickets.
The bench of Justice Mohammed Nias C.P. has declared that the sale of lottery tickets does not come within the purview of auxiliary service or taxable service as defined under Section 65 of the Finance Act, 1994, and is consequently not a taxable service within the meaning of Section 65(105) of the Finance Act, 1994.
The bench relied on the decision of the Supreme Court in the case of Union of India v. Future Gaming Solutions Pvt. Ltd. in which it was held that the service tax is not leviable on the transactions between the purchaser of the lottery tickets and the Sikkim Government and that the conduct of lottery scheme is a betting and gambling activity.
The writ petition is filed seeking a declaration that the sale of lottery tickets does not come within the purview of auxiliary service or taxable service as defined under Section 65 of the Finance Act, 1994, and is consequently not a taxable service within the meaning of Section 65(105) of the Finance Act, 1994.
It is submitted by both sides that the issue is covered against the Department by the judgment of the Honourable Supreme Court reported in Union of India v. Future Gaming Solutions Pvt. Ltd.
The court allowed the writ petition.
Case Details
Case Title: C.N.MITHRAN Versus UOI
Case No.: WP(C) NO. 11406 OF 2018
Date: 10/04/2025
Counsel For Petitioner: GEORGE POONTHOTTAM
Counsel For Respondent: SREELAL N WARRIER
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
