Renting of immovable property - Retrospective amendment by Finance Act, 2010 - petiotioner contended that, states that the amendment sought to be introduced, puts the petitioner in a worse position than the original provision which has already held not to have any element of service so as to be exigible to service tax

2010 -TMI - 75874 - HIGH COURT OF DELHI

Held that: Prima facie, it appears that renting of immovable property itself has been regarded as a service by virtue of the recent amendment even though this Court by virtue of the said decision on 18.04.2009 had categorically concluded that renting of immovable property by itself cannot be regarded as a service. - there shall be no recovery of service tax from the petitioner in respect of renting of immovable property alone. No such service tax would also be recovered from respondents 5-10 in the meanwhile.

 

Renting of immovable property as service: interim protection against service tax recovery after retrospective amendment. The Finance Act, 2010 retrospectively classifies renting of immovable property as a taxable service, conflicting with prior judicial findings that renting alone is not a service; the court directed interim restraint on recovery of service tax for renting of immovable property pending resolution of the legal dispute.