TMI Blog2021 (8) TMI 830X X X X Extracts X X X X X X X X Extracts X X X X ..... COURT] has stated that orders are not like old wine becoming better over time. Thus, an order, to be valid, must speak for itself and contain reasoning for the conclusions arrived at. Seen in this light, the impugned order is clearly deficient. Circular No.1073/06/2019.CX in F.No.276/78/2019/CX-8.Pt.III dated 29.10.2019, issued by the Central Board of Indirect Taxes and Customs provides clarifications for several issues arising from the application of the Scheme - the Circular refers to the Supreme Court having permitted the lessees to agitate the service tax demands made upon the landlord and the question that then arises is as to whether the reference to 'such persons' , is to the lessee mentioned in the previous sentence or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 'Act') for the period April 2008 to September 2011, under the head 'Renting of Immovable Property Services' . 4. There was considerable litigation surrounding the levy of service tax under the above head. Many of the assessees upon whom demands were raised had agreements with the service recipients that is, the lessors/landlords/assessee with their lessees/tenants, that the burden of service tax would be borne by the latter. Thus, the private agreements provided that the assessees would pass on the liability to their tenants and this was one of the defences taken by the assessee/ landlords before the Service tax Department. In many instances the challenge to the demands raised, including that to the validity of the sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the petitioner to remit the same. The Form stated that if the declarant i.e., the petitioner, did not concur with the amount estimated, he could appear for a personal hearing before the respondent on 21.02.2020 to explain its stand. 8. The petitioner appeared before the respondent and also filed written submission dated 28.02.2020 wherein it submitted that payments had already been effected by its lessees pursuant to an interim order passed by the Supreme Court, and such remittances may be given credit to in computing the payment required to be made by it under the Scheme. 9. The impugned order, Form SVLDRS- III has been issued on 04.03.2020, wherein credit has been given only to an amount of ₹ 10,73,726/- and the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be issued thereafter, either accepting the declaration or indicating the amount to be remitted after taking note of the objections raised by the petitioner/applicant to the estimate made by the Designated Authority. 12. A missing link in the procedure, in my considered opinion, is the passing of a reasoned order in the event the respondent does not agree with the objections raised by the declarant. In my view, it is incumbent upon the authority to take note of the objections raised by the declarant to the estimate made. Should he agree with the objections, there is nothing further to be done, Form III will indicate the final amount payable which will be in line with the quantification made by the declarant. In the event that he does ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice Tax on rentals on immovable properties. At paragraph 2 (v), the Board states as follows: '2. ............. (v) ........................ M/s. Retailers Association of India have represented that in many cases, department has initiated proceedings against lessors from non-payment of service tax on rent on immovable property rented by their members. Hon'ble Supreme Court has allowed the lessees to file a Civil Appeal challenging the applicability of service tax in such matters, subject to the condition that they deposit appropriate pre-deposit as well as the remaining dues, if the case is decided against them eventually. It is clarified that such persons are allowed to file a declaration under the Scheme and avail t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h law as to the veracity or otherwise of the petitioner's declaration and whether credit may be taken by the petitioner, of payments effected by lessees (third parties) in regard to the declaration filed by the landlord. The Circular issued by the Board will be taken note of and discussed in coming to a conclusion in the matter. If the respondent is so inclined to accept the petitioner's contention qua adjustments of the remittances effected by the lessees, then the process of verification of the payments may follow. Let orders be passed within a period of four (4) weeks from 19.08.2021 i.e. on or before 20.09.2021. 19. This writ petition is disposed in the aforesaid terms. Connected Miscellaneous Petitions are closed. No costs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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