TMI Blog2020 (7) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... as to whether the liability to pay the taxes is on the Petitioner or Respondent No. 1. This question would have to be determined inter-se Petitioner and Respondent No.1, in appropriate proceedings, having regard to the terms and conditions of the lease agreement and in particular the Clause 13, extracted in the foregoing paragraphs. In so far as the tax department is concerned, it is the Petitioner who is registered with them and is liable to pay taxes. Under GST, the point of taxation, that is the liability to pay GST will arise at the time of supply, as determined for goods and services. This obligation to pay Service Tax/GST is irrespective of Respondent No. 1 taking credit of the taxes paid. Thus, whether Respondent No. 1 has availed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecover the Service Tax now GST amount from the Tenant -the respondent no 1. Such other or further orders may be passed in favour of the petitioner and against the respondents as this Hon ble Court deems fit and proper under the facts and circumstances of the case. 4. The Petitioner avers that it is the sole/absolute owner/lease rights holder and in possession of shop/office premises situated on the ground floor, Plot No. C- 2, J Block, L.S.C., Wazirpur, Opp. Water Tank Ashok Vihar, Delhi 110052. The afore-noted property has been leased in favour of Respondent No.1, vide lease agreement dated 27th June 2011, on a monthly rent of ₹ 81,000/-, for a term of 15 years. Clause 13 of the lease deed is stated to be the bone of cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onent and the balance amount due and payable by Respondent No. 1 against each invoice. Mr. Sinha argues that even though Respondent No.1 has discharged the liability towards the rent amount, but the taxes levied on the invoices are outstanding. 7. Relying upon the provisions of the Finance Act and the judgement of this court in the case of Pearey Lal Bhawan Association Vs. Satya Developers Pvt. Ltd, 173 (2010) DLT685, it is contended that even though the primary liability for payment of service tax/GST is on the owner of the property, but the same is ultimately payable by the tenant. It is further argued that both service tax as well as GST can be adjusted against the out-going taxes. Therefore, whatever amount is paid by Respondent No.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod commencing from November 2012 to June 2020. Petitioner contends that the outstanding amount is towards the tax component levied on the said invoices. In the present case, we have not been called upon to adjudicate as to whether the liability to pay the taxes is on the Petitioner or Respondent No. 1. This question would have to be determined inter-se Petitioner and Respondent No.1, in appropriate proceedings, having regard to the terms and conditions of the lease agreement and in particular the Clause 13, extracted in the foregoing paragraphs. Here, we are only concerned with respect to the prayer made in the present petition seeking a direction to Respondent No. 2 [Principal Chief Commissioner of GST and Central Excise] to furnish the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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