The tenant - a nationalized bank initially paid service tax from June to October 2007. Subsequently stopped ST payments citing Bombay High Court stay order and also recovered whatever ST they paid from subsequent month rent, despite the fact they have taken Cenvat credit based on the invoices given. With effect from July 2009 (retorspective effect) their lease deed was renewed on March 2011, and now the bank volunteers to pay ST but from July 2009 only. I sent a letter to the bank that they should pay the ST from June 2007 with penalties and interests as it was they who have refused to pay citing the High Court stay order and that I cannot accept part-payment from July 2009. Am I right in doing so? Should I or should I not take their ST payment today with effect from July 2009 and keep the ST from June 2007 to June 2008 pending.
CAclubindia
