UOl & Ors Vs Home Solutions Retails India- Service tax on renting of immovable property - reg. - Service Tax - F. No.276/282/2010-CX.8A

F. No.276/282/2010-CX.8A Government of India Ministry of Finance Department of Revenue Central Board of Excise Custom New Delhi Dated: February 24, 2011 Subject: SLP (C) CC No.16960/2010 - UOl Ors Vs Home Solutions Retails India- Service tax on renting of immovable property - reg. Please find enclosed a copy of letter from Ld. Additional Solicitor General of India, Shri Vivek Tankha on the above subject. In this context attention is invited to this office letter of even number dated 14.1.2011 (copy enclosed). 2. The above stated matter came up for hearing before the Supreme Court on 4.2.2011. The Hon'ble Supreme Court has passed an order to the effect that the High Court of Delhi will hear and dispose of all the writ petitions as expeditiously as possible. Further, the Supreme Court has ordered that the interim order which was passed by the Supreme Court on 10.1.2011 would continue to operate till the disposal of the writ petitions in the High Court. In effect, the interim order, dated 18.5.2010, passed by the Delhi High Court (post amendments), staying the levy of service tax on renting of immovable property has been nullified. Subsequent to the interim order of Delhi High Court, dated 18.5.2010, a large number of orders were passed by various High Courts, staying the levy of service tax on renting of immovable property till final disposal of WPs. 3. The Ld. ASG has opined that the Union of India is now legally empowered, in view of the Supreme Court order, as mentioned above, to collect service tax on commercial properties until the final judgement of the High Court of Delhi in the post amendments scenario. He has advised that applications may be moved before all the High Courts in India for vacation of interim direction issued in favour of petitioners. 4. In view of the above, necessary action for filing of application for vacation of interim directions issued in favour of petitioners by various High Courts may please be taken expeditiously. Further, necessary steps for collection of pending service tax may also be taken. (G .D Lohani) Director (Legal)