K. Arumugam Etc. Etc vs Union Of India And Ors. Etc

The Supreme Court addressed the constitutional validity of the Explanation to Section 65(19)(ii) of the Finance Act, 1994, which pertains to the imposition of service tax on lottery ticket sales. The Court held that the activities of purchasing and selling lottery tickets do not constitute a 'taxable service' under the Finance Act, reaffirming the precedent set in Sunrise Associates vs. Govt. of NCT of Delhi, (2006) 5 SCC 603. Consequently, the appeals against the High Court judgments of Sikkim and Kerala were allowed, ruling in favor of the appellants.