UNION OF INDIA vs M/S MARTIN LOTTERY AGENCIES LTD.

The Supreme Court addressed whether the sale, promotion, and marketing of lottery tickets fall under the purview of 'Service Tax' as defined in Section 65(105) of the Finance Act, 1994. The Court held that the activities of distributors, who purchase lottery tickets from the State and sell them to stockists, constitute promotion or marketing services, thus making them liable for service tax under 'business auxiliary service'. The judgment affirmed the High Court's decision that the transactions do not qualify as a sale under the Lottery (Regulation) Act, 1998, and upheld the requirement for registration and payment of service tax by the distributors.