Challenge to tax notifications over whether the underlying activity amounted to a taxable service or supply remains undecided.

A challenge was raised to Notification No. 4 of 2018-Central Tax (Rate) and Notification No. 4 of 2018-State Tax (Rate) on the basis that they purported to tax an activity said not to amount to a service or supply of service. The petition was directed to be served on the respondents and was adjourned for further hearing, with no final adjudication on the validity of the notifications at that stage.

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Issues: Challenge to the validity of Notification No. 4 of 2018-Central Tax (Rate) dated 25th January, 2018 and Notification No. 4 of 2018-State Tax (Rate) dated 25th January, 2018 on the ground that they sought to tax an activity said not to amount to a service or supply of service.

Outcome: The petition was directed to be served upon the respondents and stood adjourned for further hearing; no final adjudication on the challenge was made.

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