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2011 (8) TMI 58 - HC - Service TaxService tax on Renting of immovable property - Constitutional validity Legislative changes retrospective effect Held that: - The assumption by a legislative body that an element of service is involved in the renting of immovable property is certainly not an assumption which can be regarded by the Court as being so manifestly absurd or perverse as to lead to an inference that Parliament had treated as a service, an item which in no rational sense could be regarded as involving service. - There is no violation set up of any provision in Part III of the Constitution Levy of service tax is constitutionally valid on Renting of immovable property. With Regard to Retrospective amendment violation of Article 14 of constitution Held that: - The provision was given retrospective effect so as to cure the deficiency which was found upon interpretation by the Delhi High Court. The notes on clauses accompanying the introduction of the Finance Bill of 2010 would indicate that the amendment has been brought about to validate the provision. Whether the case was involving substantial question of law Held that: - the scope and ambit of Entry 49 of List II of the Seventh Schedule and of the residuary power of legislation of Parliament have been considered by several judgments of the Constitution Bench of the Supreme Court and this Court has followed the law as expounded therein. - the case does not involve a substantial question of law as to the interpretation of the Constitution. Decided in favour of revenue.
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