Renting of Immovable Property

[DEV KUMAR KOTHARI]

Service tax notifications are issued at Delhi and they are applicable all over India. The issuign authority is GOI or Board. If a notification is held invalid by any court, then the notification becomes not applicable all over India. Particulary if a notification issueda ta Delhi, and is also held invalid, by Delhi High Court (e.g. in case of commercial renting), then the judgment of Delhi High Court is applicable all over India. This is becasue the notification itself has lost its existence. Other branh\ches of ST departmetn can levy and collect tax only when there is a bvalid notification in force. When notification is not in force, anay branch of ST departmetn cannot enforce any such notification which has been held ultravirse. In my view, the principal of limited binding nature in area of jurisdictioan of court will not apply in such a case.

[Mukesh Kumar]

Service tax is a central levy and therefore, there can not be two stands under one act for different parts of country (unless there is some specific provision). The provisions are two be applied uniformly. Therefore the decision of Delhi High Court is applicable and valid for all over India. Moreover, there were various writ petitions in different high courts in respect of renting. On the request of central government, apex court and consolidated all the writ petitions and referred to delhi high court for decision. Therefore, from this aspect also, the decision of Delhi High Court in case of rending has equal fource all over India.

AI Summary

Service tax uniformity: invalid central notifications lose nationwide effect, preventing regional enforcement of that levy. Central service tax notifications function as a uniform national instrument; if a notification is judicially held invalid it ceases to have force and regional branches cannot legitimately levy or collect tax under that notification, and the central character of the levy prevents divergent legal positions across different geographic areas absent specific statutory provision.