The Supreme Court on Wednesday stayed Bombay High Court decision that upheld service tax on the commercial rentals.Bombay High Court had earlier extended the stay upto 30.9.2011 after it upheld the provisions with retrospective effect from 01.06.2007.
It is noteworthy that earlier Delhi High Court in favour of was NOT stayed in 2009. Therefore granting stay on latest judgement is consistent with the previous stand of Supreme Court.
This time SC is up against orders by 6 or 7 High Courts : P&H, Gauhati, Orissa, Bombay, Gujarat, Delhi and perhaps Karnataka (to be confirmed).
In case SC quashes the orders of these High Courts and holds that renting is not a service, readers are requested to please guess whether it would be followed by another retrospective amendment. by Govt.
There are hopes that SC may order waiver of interest and penalties on late payment of tax, subject to certain stipulations.
I am reminded of the man in gallows facing death sentence. Every time he makes a representation, hanging is postponed. Wait of impending death merely prolongs his agony.
What do you think : will the landlords and tenants be ultimately saved to rejoice ?
Next date 14.10.2011 in Supreme Court.