Gujarat Ambuja Cements Ltd.& Anr vs Union Of India & Anr

The Supreme Court upheld the constitutional validity of Sections 116 and 117 of the Finance Act 2000 and Section 158 of the Finance Act 2003, which sought to overcome the decision in Laghu Udyog Bharati & Anr. Vs. Union of India & Ors. (1999) 6 SCC 418. The Court ruled that Parliament had the legislative competence to impose service tax under Entry 97 of List I of the Seventh Schedule, despite challenges regarding encroachment on State powers under Entry 56 of List II. The Court found no merit in claims of discrimination against customers of goods transport operators and upheld the imposition of service tax as valid and constitutional.