TaxTMI 
TaxTMI 
2016 (8) TMI 824
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....a sum of Rs. 1,07,832/-, Rs. 14,20,467/- and Rs. 3,14,874/- as Service Tax per half year which is based upon the annual value in respect of three of the buildings. 3. The legal issue involved in this writ petition is as to whether the respondent could demand the property tax for the buildings used by the petitioner Department which is owned by the President of India. The respondent has been demanding payment of property tax. However, at the relevant point of time viz., 2007-08, it appears that based on some circular which was prevailing during the said period and on certain advice, some amounts were remitted by the petitioner Department. But the respondent Corporation has received those amounts and issued receipts as if they were remitted ....
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....rther referring to paragraph 5 of the affidavit filed in support of the writ petition submitted that the petitioner Department is separately paying Service Charges in respect of all the buildings and there is no dispute on the said fact. 7. Though the respondent Corporation have been served and they have entered appearance through a counsel, till date no counter affidavit has been filed. However, the learned Standing Counsel appearing for the respondent on instructions from the officials present in the Court submits that though the receipts are property tax receipts, what was collected from the petitioner was only the service charges and only the receipts were issued from the property tax receipt book. 8. In terms of Article 285 of the Co....
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....was restrained from demanding tax by way of service charges from railways. 11.More recently in the case of Rajkot Municipal Corporation and others v. Union of India reported in (2013) 14 Supreme Court Cases 599, similar issue arose and ultimately an agreement was arrived at between the parties where the Union of India agreed to certain aspects. At this stage, it would be useful to refer to few of the conditions as recorded by the Hon'ble Supreme Court. "14.In view of the above, there is no need to consider the appeals on merits. We dispose of the appeals and pending applications by recording the following broad agreement between the parties: (i) The Union of India and its departments will pay service charges for the services provid....
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....upreme Court as recorded in the judgment in the case of Rajkot Municipal Corporation (Supra). Thus, it goes without saying that the Union of India will be bound by the said undertaking. 14. During the course of the argument, a question was posed by this Court to the learned counsel for the petitioner as to how these service charges have been quantified as the petitioner has stated in the affidavit that they have been paying service charges. The learned counsel replied by stating that there is no dispute to the said fact and the petitioner themselves have stated so in their letter dated 28.01.2009 stating that they are paying service charges to the Corporation of Chennai, half yearly, based on 33 1/3% of the property tax. Therefore, this su....