Case Note & Summary
The judgment, delivered orally on August 4, 2011, by a Division Bench of the Bombay High Court comprising Dr. D.Y. Chandrachud and Anoop V. Mohta, JJ., pertains to a batch of over 60 writ petitions filed by retailers, entertainment companies, and other commercial entities, including the Retailers Association of India (RAI). The petitioners challenged the levy of service tax on renting of immovable property under Chapter V of the Finance Act, 1994. The respondents included the Union of India, service tax authorities, and others. The court heard arguments from multiple senior advocates and the Additional Solicitor General. However, the available text of the judgment is truncated and does not include the substantive findings, reasoning, or final decision. Therefore, the detailed factual background, submissions, legal analysis, and operative directions remain unavailable in the provided excerpt.
Issue of Consideration
Whether the levy of service tax on renting of immovable property is constitutionally valid under the Finance Act, 1994.
Law Points
- Service tax is a levy on taxable services under the Finance Act
- 1994
- Sections 65
- 66
- 67
- and 68 provide the statutory framework for imposition
- charge
- valuation
- and payment of service tax.
Case Details
2011 LawText (BOM) (08) 50
Writ Petition No. 2238 of 2010 with Chamber Summons No. 128 of 2011 and connected writ petitions
Dr. D.Y. Chandrachud, Anoop V. Mohta
Aspi Chinoy, D.J. Khambata, Suresh S. Pakale, R.V. Desai, and many other advocates for various parties
Retailers Association of India (RAI) and other petitioners
Union of India and Others
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Nature of Litigation
Constitutional challenge to the levy of service tax on renting of immovable property under the Finance Act, 1994.
Remedy Sought
Quashing of the service tax levy on renting and a declaration that such levy is unconstitutional.
Filing Reason
Petitioners contended that the levy of service tax on renting of immovable property is beyond legislative competence or violates fundamental rights.
Issues
Whether service tax can be levied on renting of immovable property under the Finance Act, 1994.
Judgment Excerpts
Service tax on renting : In 1994, Parliament legislated to provide for the imposition of a service tax. Section 65 of the Finance Act of 1994 defined taxable services, among other things. Section 66 provided for the charge of service tax on taxable services. Section 66 stipulated that there shall be levied a tax at the rate of 12% “of the value of taxable services” referred to in clause (105) of Section 65.
Procedural History
A batch of writ petitions filed in 2010 and 2011 was consolidated and heard by the Bombay High Court on August 4, 2011. Chamber Summons No. 128 of 2011 was also taken up. The court delivered an oral judgment on the same day.
Acts & Sections
- Finance Act, 1994: 65, 65(105), 66, 67, 68
