Retrospective service tax on renting of immovable property stayed, while prospective assessment and levy were permitted.

The Allahabad HC stayed the retrospective operation of service tax on renting of immovable property until further orders, so the levy could not operate retrospectively at that stage. The respondents were permitted to proceed with assessment and levy only on a prospective basis, preserving the tax administration's ability to act for the future while suspending the backward-looking effect of the measure.

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Issues: Whether the retrospective operation of service tax on renting of immovable property was to be stayed, and whether the respondents could proceed to assess and levy service tax prospectively.

Outcome: The retrospective operation of the levy of service tax on renting of property was stayed until further orders, while the respondents were left free to assess and levy service tax with prospective effect.

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