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of <h1>Lottery Distributors Exempt from Service Tax; Supreme Court Upholds Sikkim High Court Ruling, Citing Entry 62, List II.</h1> The Supreme Court ruled that lottery distributors are not required to pay service tax to the Union government, dismissing an appeal by the Centre against a Sikkim High Court decision. The bench, comprising Justices BV Nagarathna and NK Singh, stated that since there is no agency relationship, service tax is not applicable to transactions between lottery ticket purchasers and firms. The court upheld that only state governments can impose taxes on lotteries under Entry 62, List II of the Constitution. The Centre had argued for the right to impose service tax but was unsuccessful in its appeal.
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