Finance Act, 1994 – Constitutionality of the Explanation added to Section 65 (19) (ii) of the Finance Act, 1994- The Explanation was omitted with effect from 01.07.2010. However, these cases pertain to the period prior to 01.07.2010- The mere insertion of an explanation cannot make an activity a taxable service when it is not covered under the main provision-This is because sale of lottery tickets is not a service in relation to promotion or marketing of service provided by a client, i.e., the State – Conducting a lottery which is a game of chance is ex facie a privilege and an activity conducted by the State and not a service being rendered by the State. The said activity would have a profit motive and is for the purpose of earning additional revenue to the State exchequer. The activity is carried out by sale of lottery tickets to persons, such as the assessees herein, on an outright basis and once the lottery tickets are sold and the amount collected, there is no further relationship between the assessees herein and the State in respect of the lottery tickets sold. The burden is on the assessees herein to further sell the lottery tickets to the divisional / regional stockists for a profit as their business activity. This activity is not a promotion or a marketing service rendered by the assessees herein to the State within the meaning of sub-clause (ii) of Clause 19 of Section 65 of the Finance Act, 1994-Lottery tickets are actionable claims -The sale of lottery tickets by the State is a privileged activity by itself and not rendering of a service .