In absence of stay from SC, department can’t collect service tax on renting of immovable properties by resorting to other means

Executive Summary: – In absence of Supreme Court’s order staying operations of High Court’s judgment relating to levy of service on renting of immovable property, Revenue Department could not instruct its officers to pursue the matter with tax payers calling upon them to pay service tax on same or to resort to other means under the law to protect the Revenue.

RELEVANT PARAGRAPHS:

By the Finance Act, 2007, service “in relating to renting of immovable property for use in the course or furtherance of business or commerce” was introduced within the definition of taxable service as sub-section (zzz) to section 65 (105) along with corresponding insertions to section 66 and 65 (90a) thereto. Notification dated 22-5-2007 was thereafter issued making the aforesaid amendment effecting from 1-6-2007. The said Notifications/amendments as well as circular was challenged by various tenants and landlords by filing various Writ Petitions. These writ petitions were decided by this Court on 18 -4-2009 in Home Solution Retail India Ltd. v. UOI and others (2009) 20 STT 129 by the said judgement this Court hold that aforesaid notification and circular were ultra vires the provisions of the Finance Act.

Respondent no. 1 has filed Special Leave Petition No. 1385O/ 2009 in the Supreme Court challenging the aforesaid judgement dated 18,h April. 2009 rendered by this Court, though in the Special Leave Petition till date Supreme Court has not granted any stay on the operation of that judgment. Therefore even when Special Leave Petition is pending, the judgement of this Court as of today holds and in the absence of any stay the respondents are hound to follow the same.

Grievances made in this petition is that in spite of the aforesaid position, the respondent No. l is issuing instructions to its officers throughout the’ country slating that in

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