Service Tax - Renting - AP High Court stays retrospective amendment
TRENT Ltd and Future Value Retail Ltd have challenged before the AP High Court, the service tax with retrospective effect on renting of immovable property, brought in by the Finance Act, 2010.
The prayer in the Writ petition reads as,
To issue a Writ order or direction one more particularly in the nature of Writ of Mandamus
a) Declare the impugned provisions, viz. section 65( 90a ) read with Section 65(105 )(zzzz) of the Finance Act, 1994 as amended by the Finance Act, 2008 and Finance Act 2010 as null and void and ultra vires the Constitution of India and/ or section 66 of the Finance Act and /or be strike down the said provisions as illegal, arbitrary and violative of Articles 14, 246 and 265 of the constitution of India;
b) Issue a Writ order or direction in the nature of Certiorari or any other Writ, order or direction of like nature, setting aside Section 75(5 )(h) and Section 76 of the Finance Act 2010;
c) Declare the Notification no. dt. 22nd May 2007 and Circular No. dt. 4-1-2008 as revived by Finance Act 2010 issued by the Respondent No.1 as illegal, null and void and ultra vires the provisions of the Finance Act 1994 as amended by the Finance Act 2007 and Finance Act 2008 and Finance Act 2010
d) Issue a Writ of Mandamus or a Writ in the nature of Writ of Mandamus or any other appropriate Writ order or direction restraining the respondents by their servants agents and subordinates from directly or indirectly giving effect to or acting upon the impugned Notifications or impugned circulars or collecting any taxes on the basis of Section 65(90a) 65(105)(zzzz) read with Section 66 as amended by Finance Act 2010 and provided retrospective operation on and from 1-6-2007.
e) Issue a Writ of Mandamus or a Writ in the nature of Writ of Mandamus or any other appropriate Writ order or direction restraining the respondents by their servants agents and subordinates from directly or indirectly giving effect to or acting upon the Section 65(90a) 65(105)(zzzz) read with Section 66 as amended by Finance Act 1994 as amended by Finance Act 2007 and Finance Act 2008 and Finance Act 2010 as stated hereinabove;
The petitioner also filed an injunction petition seeking
to restrain the respondents their servants, officers and agents from in any manner whatsoever giving effect to directly or indirectly or acting upon Notification 24/2007 dt. 22nd May 2007 and Circular No. 98/1/2008-SAT dt. 4-1-2008 as revived by Finance Act 2010 or levying or collecting any taxes on the basis that Section 65( 90a ), Section 65(105)(zzzz) read with section 66 Finance Act, 1994 and recovering any service tax on renting of immovable property from the petitioner pending disposal of the above Writ petition.
And it appears that the High Court has granted the interim injunction. DDT spoke to Mr. Niranjan, the Advocate appearing for the petitioner and he confirmed that the High Court has granted the interim injunction. We will bring you the order as soon as it is made available – maybe tomorrow.