TMI Blog2014 (12) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... as such it was not open for the appellant to seek that Respondent No.5 deposit the entire amount of service tax as the same was contrary to the consent award dated 30.03.2011. It was further observed that despite having such Consent Award in its favour, the appellant insisted on Respondent No.5 securing it by a bank guarantee and as such it is the appellant who must bear the cost for the bank guarantee furnished by Respondent No.5. The High Court thus directed the appellant to pay to Respondent No.5 a sum of ₹ 1.06 crores, being the cost of bank guarantee. Supreme Court affirm the view taken by the High Court. The interest of the appellant was well secured by the Award dated 30.03.2011 which was a Consent Award. Respondent No.5 ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herein were granted a licence to set up and operate duty free shops within the airport premises. Thereafter Respondent No.5 herein was incorporated and a settlement agreement dated 07.02.2008 was signed whereby licence agreement dated 09.11.2006 was novated in favour of Respondent No.5. In consideration of said licence, Respondent No.5 was required to pay to the appellant a fixed monthly licence fee and also a share of the gross revenue generated by various products categories which were to be sold at the duty free shops. 3. The Finance Act, 2007 introduced the levy of service tax on services in relation to renting of immovable property through the introduction of Section 65(90)(a). The charge of service tax was accordingly introduced in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecorded that the service tax, interest and penalty, if any, on the transaction between the appellant and respondent no.5 was liable to be paid by respondent no.5 in terms of said award. The relevant portion of the Consent Award was to the following effect: (iii) Respondent shall pay to the Claimant, the entire actual amount towards (a) Service Tax (b) Interest on Service Tax, and (c) Penalty on Service Tax as may be imposed by the Government and /or relevant authority in relation to the invoices raised by DIAL on Alpha Airport Retail Private Limited under the Agreement within 7 days of such imposition. As the actual amount towards (a), (b) and (c) (together referred to as Tax Liability ) cannot be ascertained as of now, in view of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 42,36,52,066/- comprising of ₹ 17,74,24,866 as service tax payable and ₹ 6,88,02,334/ as interest till date and ₹ 17,74,24,866 towards penalty and to continue to deposit periodically before this Hon ble Court amounts towards interest accruing on the that service tax, till the disposal of the petition or periodically increase bank guarantee in favour of the Applicant in respect of the said amounts; b. For such further and other orders, directions and reliefs as the nature and circumstances of the case may require. 6. The aforesaid application was disposed of by the High Court directing Respondent No.5 to furnish the bank guarantee in the sum of ₹ 42,36,52,066/- in favour of the Registrar General of the High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the arrangements as recorded in the award dated 30.03.2011 and as such it was not open for the appellant to seek that Respondent No.5 deposit the entire amount of service tax as the same was contrary to the consent award dated 30.03.2011. It was further observed that despite having such Consent Award in its favour, the appellant insisted on Respondent No.5 securing it by a bank guarantee and as such it is the appellant who must bear the cost for the bank guarantee furnished by Respondent No.5. The High Court thus directed the appellant to pay to Respondent No.5 a sum of ₹ 1.06 crores, being the cost of bank guarantee. 8. It is this direction that the appellant must pay to Respondent No.5 the cost of bank guarantee, which is und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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