Rebecca Andrews
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.

More Under Service Tax


  1. manoj choudhary says:

    please let me know about what happened on next scheduled date on 14/10/2011.
    please reply at an earliest.
    manoj choudhary.

  2. Vineet Agrawal says:

    The stand of Hon’ble Supreme Court has left landlords to the mercy of tenants and tax authorities.

    SC admitted revenue’s appeal against earlier Delhi Court order in Home Solution case which held levy of service tax on renting as unconstitutional. However, no stay against the operation of order was granted, thus tenants stopped payment of service tax.

    Subsequently, when Delhi High Court granted stay against recovery of Service Tax in a writ filed by Home Solution against retrospective amendment by Finance Bill, 2010, the Supreme Court stayed the operation of such order, giving liberty to tax officials to initiate recovery against landlords in view of amended service tax provisions.

    Now when most of the High courts including Delhi High Court have settled the matter in favour of revenue, SC has once again changed its stand and stayed recovery for period prior to 30-9-2011. Again, tenants are having upper hand.

    Helpless Lanlords!!!

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June 2021