All India Federation Of Tax ... vs Union Of India & Ors

The Supreme Court upheld the legislative competence of Parliament to levy service tax under Article 246(1) and Entry 97 of List I of the Seventh Schedule to the Constitution, affirming the Bombay High Court's judgment. The Court clarified that service tax is an indirect tax applicable to services rendered by professionals such as chartered accountants and architects, despite objections based on Entry 60 of List II and Article 276. The appeal was dismissed, reinforcing the validity of the Finance Act, 1994 and Finance Act, 1998.