Renting of immovable Property– Bombay High Court Relief
Similarly, we are also flooded with requests for copy of the order of the Bombay High Court on renting of immovable property. Of course we had a solitary Netizen, who found fault with us for giving so much hype to interim orders of the High Courts, which are not final. The Netizen, who seems to be a committed Departmental officer, tells us that ultimately the Government will win and then all these stay winners, will have to pay the tax with interest!. True, but should we hide the interim orders?
Anyway, the Bombay High Court in its order observed that the matter is now moved before the Supreme Court and so the High Court cannot decide the issue finally. So till the matter is finally decided by the Supreme Court, the High Court has ordered, in the petition filed by the Retailers Association of India that:-
1. In the event, demand of service tax being made under the provisions of Section 65(90a), Section 65(105) (zzzz) and section 66 of the Finance Act, 1994 as amended by Finance Act, 2007 in respect of the Petitioner's member's premises, such members of the Petitioners shall file undertaking in this Court stating that in the event the challenge is disallowed, they shall make payment of service tax due and payable in accordance with the aforesaid provisions as may be directed by this Court.
2. It is further directed that in case such undertaking is given, the person who is submitting the undertaking shall not be entitled to transfer his interest in the property in relation to which the demand of service tax is made without first giving two weeks prior notice of his intention to transfer his interest and the nature of the transfer to the Respondents. In case within the period of two weeks, objection is raised on behalf of the Respondents to the proposed creation or transfer of interest, then no interest will be created or transferred without seeking leave of the Court. It goes without saying that if the objection is not raised within the period of two weeks, the person shall be free to create or transfer proposed interest in the property.
3. On the undertaking mentioned above being filed by the members of the Petitioners, no coercive steps shall be taken by the Respondent for recovery of service tax in respect of the premises of such members of the Petitioners.
Click here for the order