Service Tax was Levied on 'Renting of Immovable Property', with effect from 1st June 2009, which was subsequently challenged by various Parties before various High Courts throughout the country. As per Supreme Courts direction, all Writ Petitions were transferred to Delhi High Court.
Hon'ble Delhi High Court on 18.04.2009 in the case of Home Solution Retail India Ltd & Others V/s Union of India, reported in Taxindiaonline 2009 - TIOL - 196 - HC - DELHI - ST, struck down the Levy of Service Tax on 'Renting of Immovable Property Services' as "un-constitutional", while disposing of 26 Writ Petitions filed by the different Parties. A copy of the aforesaid Judgement is attached below for your kind perusal.
Central Board of Excise & Customs, issued a Circular dated 15.07.2009 stating that, the Department had filed a SLP before Hon'ble Supreme Court challenging the Delhi High Court Order dated 18.04.09 and the dispute has not reached the finality. Under the circumstances, the Board has issued instructions to all Commissioner of Central Excise & Service Tax throughout the country to take necessary action to safeguard the Government Revenue by either pursuing the Tax Payers to pay the service tax due or to issue Show Cause Notice to protect the Govt. Revenue. A copy of the aforesaid Board's Circular is attached below for your kind perusal.
In view of the above, now Commissioner of Central Excise & Service Tax throughout the country may start issuing Show Cause Notice demanding service tax on 'Renting of Immovable Property'.
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