<h1>Supreme Court Upholds Central Government's Authority to Levy Service Tax on Financial Leasing Services Under Finance Act, 1994.</h1> The Supreme Court has confirmed the central government's authority to levy service tax on financial leasing services, including equipment leasing and hire-purchase. A three-judge panel dismissed petitions challenging the amendments to the Finance Act, 1994, which enabled this tax. The court ruled that the service tax is within the legislative competence of Parliament under the Constitution. The decision came after financial and leasing companies contested the tax's validity. The government initially introduced service tax in 1994, expanding it to banking and financial services in 2001. This ruling aligns with previous cases affirming Parliament's power to levy service tax.