https://www.taxtmi.com/caselaws?id=793 A statutory supervision levy collected under an excise law, even when linked to liquor storage, was treated as a statutory charge and not consideration for a taxable storage and warehousing service under the Finance Act, 1994. Because the levy was not payment for a service actually rendered by the assessee, the basis of the service-tax demand failed and the related demands could not be sustained. On the constitutional point, Article 289 was held not to bar Union taxation merely because the activity involved a State levy, as the exemption is confined to State property and income; however, that objection did not cure the defect in the service-tax demand. en-us Mon, 04 Sep 2006 00:00:00 +0530 Tue, 01 Jul 2008 11:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793 A statutory supervision levy collected under an excise law, even when linked to liquor storage, was treated as a statutory charge and not consideration for a taxable storage and warehousing service under the Finance Act, 1994. Because the levy was not payment for a service actually rendered by the assessee, the basis of the service-tax demand failed and the related demands could not be sustained. On the constitutional point, Article 289 was held not to bar Union taxation merely because the activity involved a State levy, as the exemption is confined to State property and income; however, that objection did not cure the defect in the service-tax demand. Case-Laws Service Tax Mon, 04 Sep 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793