Advocacy update: Levy of Service Tax on Renting of Commercial Properties
Advocacy update: Levy of Service Tax on Renting of Commercial Properties
May 9, 2018
Retailers Association of India (RAI) had filed a writ petition in 2007 and again in 2010 before the Bombay High Court challenging the constitutional validity of the Levy of Service Tax on Renting of Commercial Properties, in which RAI Members were granted an interim relief. When the matter was dismissed by the Bombay High Court, to continue enjoying the benefit of the interim order, RAI filed a Special Leave Petition before the Supreme Court against the Judgement of the Bombay High Court.
In October 2011, the Supreme Court directed RAI members to pay half their service tax liabilities so that the matter could be scheduled for final hearing. Click here to view the order.
Subsequently, the matter was listed for hearing in March 2018. Since a lot hangs in the balance on the Supreme Court judgement, RAI has engaged the services of the best counsels and lawyers to represent the said case.
On 5th April 2018, the Apex Court accepted that the matter involves constitutional validity. Furthermore, it was held that the matter will be deferred until disposal of the issues pending before the nine judges bench in Mineral Area development Authority and others (Supra). Click here to view the order.
As per RAI's lawyers, since the matter has been referred to the nine judge bench, it may take considerable time to reach the conclusion.