High Court allows appeal on service tax for renting property with pre-deposit requirement

The High Court allowed the petitioner to appeal the order-in-original regarding service tax on Renting of Immovable Property, provided a pre-deposit is made within two weeks. The Court directed the continuation of rent attachment, subject to the Appellate Authority's orders. The petitioner, a farmer with agricultural income, had rented the property for commercial and residential purposes. The judgment demonstrates the Court's balanced consideration of the petitioner's circumstances, legal issue history, and revenue collection, with no costs awarded.

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Issues Involved:
Challenge to order in OIO SL.No.03/2017-ADC regarding service tax on Renting of Immovable Property.

Analysis:
The writ petitioner challenged the order dated 05.01.2017 related to the levy of service tax on Renting of Immovable Property. Despite being hit by laches, the petitioner argued that the issue has a history, citing a Full Bench decision of the Delhi High Court and subsequent Supreme Court proceedings. The period of assessment in the present case was from 01.06.2007 to 31.01.2015. A significant amount of the disputed demand had already been collected by the Revenue through attachment of rents paid by the lessee. The petitioner, a farmer with income solely from agriculture, rented the property for commercial and residential purposes.

The High Court noted the history of the issue and the amount already collected by the Revenue. Considering these factors, the Court allowed the petitioner to file an appeal challenging the order-in-original before the Commissioner of Service Tax(Appeals) within two weeks along with the required pre-deposit. The Court also directed that the attachment of rents from the property would continue, subject to any orders passed by the Appellate Authority. The writ petition was disposed of accordingly, with no costs awarded.

This judgment showcases the Court's consideration of the petitioner's circumstances, the history of the legal issue, and the amount already collected by the Revenue. The Court's decision to allow the petitioner to appeal while maintaining the attachment of rents reflects a balanced approach to the matter.

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