Writ petitions challenging the constitutional validity of levy of Service Tax on renting of immovable property – CBEC files transfer petition in Supreme Court.
Ever since service tax has been imposed on renting of immovable property, the same has been surrounded by several controversies and many feel that the levy is unconstitutional. The levy has been challenged in many High Courts. Before the High courts give a ruling and may be to avoid conflicting decisions, the CBEC has stepped in to seek an authoritative pronouncement on the question of law. In a communication to the field, the Board informed that:
Large number of Writ Petitions have been filed by number of petitioners in various High Courts of the country challenging the Constitutional validity of subsection (90a) of section 65 read with section 65 (105) (zzzz) of the Finance Act, 1994 seeking to levy Service Tax on renting/leasing of immovable property.
The Board has already filed a transfer petition in the Hon'ble Supreme Court of India, inter-alia praying, for transfer of 15 writ petitions filed in the Hon'ble High Courts of Mumbai, Chennai, Punjab & Haryana, Kerala & Kolkata for determination and authoritative pronouncement on the question of law involved, by the Hon'ble Supreme Court.
The Board also wanted that the Government Counsels representing the department in respective High Courts in the writ petitions, now being filed on the subject issue be instructed to make a prayer to the Hon'ble High Court not to proceed with the same till the outcome of the transfer petition filed by the department in the Hon'ble Supreme Court and till such time all these matters may be kept in abeyance by the respective High Courts. It is also requested that the copy of the writ petitions filed by the parties and received by the department, may immediately be forwarded along with a neatly typed spare copy, as the Board is again contemplating to move another transfer petition in respect of the writ petitions filed subsequent to filing of the above stated transfer petition by the department before the Hon'ble Supreme Court.
F.No. 8A Dated : April 24, 2008