ASSOCIATION OF LEASING & FINANL.SER.COS vs UNION OF INDIA .

The Supreme Court upheld the validity of Sections 65(12) and 65(105)(zm) of the Finance Act, 1994, which impose service tax on financial leasing services, including equipment leasing and hire purchase. The Court ruled that the imposition of service tax is within the legislative competence of Parliament under Article 366(29A) of the Constitution, rejecting the appellant's claim that it was ultra vires. The appeal against the Madras High Court's dismissal of the writ petition was therefore dismissed, affirming the tax's legality.