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TMI Blog2024 (10) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... ing before the Hon'ble Supreme Court and temporary relief has been granted to various lessee subject to deposit 50% of the service tax due demand, the Court is inclined to set aside the impugned order in so far as imposition of penalty under Sections 77 and 78 of the Finance Act, 1994 and remits the case back to the respondent to await for the orders of the Hon'ble Supreme Court and pass orders on merits in so far as penalty and adjudicate the same in terms of Section 78 of the Finance Act, 1994. This writ petition stands disposed of. - Honourable Mr. Justice C. Saravanan For the Petitioners : Mr.Joseph Prabkar For the Respondent : Mr. T. Ramesh Kutty Senior Standing Counsel Assisted by Mr. B. Sivaraman Junior Panel Counsel ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax from their customers then amount collected need to be taken as cum-tax value and correspondingly the service is required to be recomputed. Hence, I accept this contention of the assessee that the rent collected is to considered as cum tax value in r/o rent received from M/s.Source HOV and M/s.Sundaram BNP Paribas. 2. The dispute had arisen on account of levy of service tax on renting of immovable property. The petitioners failed to discharge the service tax liability after collecting the same from the lessee as is evident from the operative portion of the impugned order which stands extracted above. By the impugned order penalty has been imposed under Section 77 of the Act, for a sum of Rs. 10,000/- on each of the petitioners and 100% pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1994 seeking to levy service tax on renting of immovable property. 9. The issue is now pending before the Hon'ble Supreme Court. The Hon'ble Supreme Court has granted interim stay of all recovery proceedings subjected the lessees depositing 50% of the tax. 10. Heard the learned counsel for the petitioners and the learned Senior Counsel for the respondent. 11. This Court is inclined to confirm the payment of service tax and appropriation of the same vide impugned order. Since the vires of levy of service tax on renting of immovable property is still pending before the Hon'ble Supreme Court and temporary relief has been granted to various lessee subject to deposit 50% of the service tax due demand, the Court is inclined to s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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