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2018 (9) TMI 1143 - AT - Service TaxLevy of service tax - renting of immovable properties such as commercial complex, shops, lands etc. to various parties - Held that - The Hon ble Supreme Court has found it proper to defer decisions in these matters awaiting the judgment of the nine Judge Bench in Mineral Area Development Authority and Others 2011 (3) TMI 1554 - SUPREME COURT - in the interests of justice, all these appeals should be kept in abeyance pending the decision of the Hon ble Supreme Court in all the three cases referred to supra, namely UTV News Ltd. 2018 (5) TMI 1367 - SUPREME COURT OF INDIA , Home Solutions Retails India Ltd. 2011 (10) TMI 13 - SUPREME COURT OF INDIA and Ritika Pvt. Ltd. 2011 (12) TMI 706 - SUPREME COURT , since the final outcome therein will have a translational impact and affect the decision in all such matters as covered in these appeals.
Issues:
Taxability of amounts received for renting immovable properties under service tax, Constitutional validity of levy of service tax under Section 65(105)(zzzz) of the Finance Act, 1994, Deferred decisions pending final judgment of the Hon'ble Supreme Court. Analysis: Issue 1: Taxability of amounts received for renting immovable properties under service tax The appeals revolved around the taxability of amounts received by the appellants for renting immovable properties like commercial complexes, shops, and lands to various parties. The lower authorities confirmed the demands of service tax with interest under the head Renting of Immovable Property as defined in Section 65(105)(zzzz) of the Finance Act, 1994, and imposed penalties under various provisions of the same Act. Issue 2: Constitutional validity of levy of service tax under Section 65(105)(zzzz) of the Finance Act, 1994 The appellants' counsel referred to various judgments, including one by the Hon'ble Supreme Court, questioning the legislative competence of Union Parliament to levy service tax under Section 65(105)(zzzz) of the Finance Act. The Hon'ble Supreme Court highlighted that the issue of legislative competence was pending before a nine-Judge Bench and suggested awaiting the final decision. The Hon'ble Delhi High Court judgments upholding the constitutional validity of the service tax on renting immovable property were also under appeal before the Supreme Court. Issue 3: Deferred decisions pending final judgment of the Hon'ble Supreme Court The Tribunal considered the judgments of the Hon'ble High Court of Delhi and the recent order of the Hon'ble Supreme Court regarding the legislative competence of Parliament to levy service tax on renting immovable property. In light of the pending decision before a nine-Judge Bench, the Tribunal decided to defer the decisions in these matters until the final judgment by the Hon'ble Supreme Court. The appeals were closed for statistical purposes, with the possibility of reopening based on the outcome of the pending Supreme Court judgment or any change in circumstances. This comprehensive analysis outlines the key issues of taxability, constitutional validity, and the deferred decisions awaiting the final judgment of the Hon'ble Supreme Court in the context of the legal judgment delivered by the Appellate Tribunal CESTAT CHENNAI.
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