9911796707
TMI Blog2015 (4) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... I note that the said entries do not deal specifically with levy of a tax on renting of immovable property services. It is not in dispute that the legislative sanction for the levy of a service tax on renting of immovable property services is traceable to Entry 97 of List I of the Constitution of India. That being so, and there being no specific entry dealing with the subject of service tax in any of the other lists in the 7th Schedule to the Constitution of India, the competence of the Parliament to legislate in respect of service tax on renting of immovable property services cannot be called in question. Thus, as far as the applicability of the Finance Act, 1994, as amended is concerned, it would apply even in respect of services render ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a subject contemplated within Entry 35, read with Entry 18 of List II of the Constitution and hence only the State Legislature can levy a tax on services rendered in connection with leasing of immovable property. It is further contended that, inasmuch as the activity of leasing out property and receiving rent, in the instant case, is an administrative function envisaged under List II of the 7th Schedule read with Article 246, the levy of service tax as contemplated under the Finance Act,1994, as amended, cannot be made applicable to the services rendered by the State Government. It is further pointed out that, the levy of service tax is on services rendered by one person to another and, in the instant case, the State Government cannot be t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner that, by virtue of Entry 35 read with Entry 18 List II of the Constitution of India, leasing of property is a subject under the State List, and therefore, only the State legislature would have the power to legislate in respect of the said subject, I note that the said entries do not deal specifically with levy of a tax on renting of immovable property services. It is not in dispute that the legislative sanction for the levy of a service tax on renting of immovable property services is traceable to Entry 97 of List I of the Constitution of India. That being so, and there being no specific entry dealing with the subject of service tax in any of the other lists in the 7th Schedule to the Constitution of India, the competence of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner to the alternate remedy of filing an appeal, against Ext.P7 order, before the CESTAT, in terms of the provisions of Finance Act, 1994, as amended. Counsel for the petitioner would point out that as per the amendment dated 16.08.2014, effected in the Finance Act, 1994, there is a requirement of payment of 7.5% of the tax amounts confirmed against the petitioner, as a pre-condition for maintaining the appeal before the CESTAT. I note, in this connection, that this Court has taken a view that, in cases where the commencement of the lis is prior to the coming into force of the amendment dated 16.08.2014, the appeal to be filed by the assessee would be governed by the provisions of the Finance Act, 1994, as is stood prior to i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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