Lottery Tickets Sale not fall under ‘Auxiliary Service’, Service Tax Not Payable: Kerala HC

The Kerala High Court has ruled that the sale of lottery tickets does not fall under the definition of 'auxiliary service' and therefore, service tax is not payable on it. The court's decision provides clarity on the tax treatment of lottery ticket sales, distinguishing it from services that facilitate or are incidental to the main activity. The judgment is based on the interpretation of the Finance Act, 1994, which governs service tax. This ruling has significant implications for the lottery business in Kerala and potentially across India, as it exempts the sale of tickets from service tax liability. The court reasoned that the sale of a lottery ticket is akin to the sale of goods and not a provision of service.