Service Tax on Renting - The Ping Pong
AN Advocate sent us this on the Renting Story.
Litigants are tearing their hair and lawyers are smiling. (or as they say, laughing their way to the Bank) In the last one month, there have been hearings in Delhi High Court on 14th December and 25th January. In Supreme Court on 10th, 20th, 24th January. Both the Courts have given further adjournments.
After the judgement was pronounced by Delhi High Court in 2009 () holding that it is not a service, appeal was filed by UOI. That round went in favour of trade. Supreme Court declined to pass any interim orders on Dept’s plea to stay the judgement. Trade was jubilant.
Round 2: In favour of Department when the Govt. tried by legislation to nullify the effect of Delhi High Court judgement by bringing back the same provision with improved definition and retrospectively.
Round 3: In favour of Trade when Delhi High Court again stayed the operation of above modified provisions. () Everyone who applied got the stay. Other High Courts followed suit.
Round 4: In favour of Department when P&H High Court upheld the main issue and the validation provisions. () Trade seemed worried.
Round 5: Delhi High Court holds hearing on 14.12.2010 but is hesitant in passing any final order. There are real handicaps. Can it overrule its own Division Bench order ? Isn’t that order of 2009 having a binding precedent ? Can it hold a hearing on main issue again when the matter is pending before Supreme Court on appeal filed by UOI in 2009 ? Should it hold a hearing when the appeal against the P&H High Court’s order has been admitted and notice issued to UOI ? () A sensible escape route was found by consensus during hearing when both – the Trade and the UOI suggested that they will approach the Supreme Court for “expeditious disposal” of main appeal. This hearing somehow lifted the spirit of the trade. Optimism prevailed.
Round 6 : Jan 10, In favour of Department. Supreme Court stays the STAY of the High Court. No one has a clue what is happening and who did what and who did not appear when he had been specifically hired ? Fingers are being raised in all directions ? Blame game begins.
Round 7: In favour of Trade : On 20th Jan, Supreme Court directs filing of affidavit and rejoinder when the second petition comes up. In fact, Home Solutions had moved an application for an early hearing and decision. They are hoping for a reconsideration of vacation of stay. Nothing of such sort happens. Trade is disillusioned.
Round 8 : On 24th Jan 2011, Supreme Court grants leave to the UOI on the main petition of 2009, agrees to the suggestion of an expeditious decision and states that the date shall be announced.
Round 9 : On 25th Jan, the drama shifts to Delhi High Court. Amidst heated arguments and allegations and counter allegations, the High Court adjourns the case to 15th February.
And why shouldn’t the passions rise ? Thousands of crores are riding on this case. Most of us lawyers are fleecing the clients by charging them fats fees for numerous appearances for the last couple of months. The gravy train’s wheels have still not made a move. Lots of activity but no movement.
The Ping Pong continues. Litigant-Lawyer-Govt.-High Court-Supreme Court and then the Supreme Court-High Court-Govt.-Lawyer-Litigant.
Anyone to wager: Who will decide first ? The Supreme Court or the Delhi High Court?