GUJARAT AMBUJA CEMENTS LTD. vs U.O.I. .

The Supreme Court examined the constitutional validity of Sections 116 and 117 of the Finance Act 2000 and Section 158 of the Finance Act 2003, which aimed to override the ruling in Laghu Udyog Bharati & Anr. Vs. Union of India & Ors. (1999) 6 SCC 418. The Court held that Parliament lacked the legislative competence to impose service tax on goods transport operators, as it encroached upon the State's powers under Entry 56 of List II of the Seventh Schedule of the Constitution. The Court found the imposition discriminatory, as it targeted specific service recipients while exempting others, thus declaring the provisions unconstitutional.