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2017 (6) TMI 119 - HC - Service TaxRenting of immovable properties - case of petitioner is that they were landlords or tenants of leased premises and contended that they could not have been saddled with liability of service tax inasmuch as it amounts to tax on 'land' hence was outside legislative competence of Parliament inasmuch as 'land' is an item covered under Entry 49 List II Schedule VII of Constitution of India and within exclusive domain of State Legislature, therefore imposition of service tax on land, by Parliament was ultra vires - Held that: - Division Bench of Delhi High vide judgment in Home Solutions Retail India Limited [2009 (4) TMI 14 - DELHI HIGH COURT] held that Section 65(105) (zzzz) does not in terms entail that renting out of immovable property for use in the course or furtherance of business of commerce would by itself constitute a taxable service and be exigible to service tax under the said Act. While interpreting circular, it was found obnoxious and beyond the said provision. Court therefore, struck down the same. - Appeal against the decision of Delhi HC is pending before SC. - Subsequently parliament amended the provisions with retrospective effect. Effects of amendments - retrospective or prospective? - Held that: - Though the appeal before SC are pending, the fact remains that various High Courts have affirmed the amendments which are under challenge in these writ petitions and appeals are pending before Supreme Court. Amendments made with retrospective effect are nothing but clarificatory and by way of ex abundanti cautela. Petition fails - decided against petitioner.
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