SC’s blanket stay on retailers service tax cases in HCs

THE Supreme Court on Monday stayed the proceedings challenging the legality of imposition of 12.36% service tax on renting out premises. Various multiplexes, members of the Retailers Association of India, Confederation of Real Estates Developers Association of India and others had moved various high courts against levy of such tax. A 3-judge bench headed by Justice BN Agrawal on the plea of the Centre also sought explanation from the Retailers Association of India, Confederation of Real Estates Developers Association of India, Multiplex Association of India and others why petitions pending in high courts on the issue should not be transferred to the apex court. The court also issued notices to Amritsarbased RS Builders, Chennai-based RR Industries, World Build Mart, General Styar Kitchen, Kasturi Estates, Mumbai-based Synergy Realters&Services, Bentley Properties, Chandigarhbased Talwandi Estates, Ernakulum-based Joy Alukkas Traders (India). The Centre through its counsel said that there is a likelihood of conflicting decisions by the high courts on the matter.