Saturday, July 31, 2010

Service tax on construction service by Budget 2010 under challenge - Bombay HC order

Service Tax – Construction Service - Constitutional Validity of
Finance Act 2010 Amendment challenged – No coercive steps till next
hearing: Notice issued to Attorney General of India

Order given below:-

IN THE HIGH COURT OF BOMBAY

Writ Petition No. 1456 OF 2010

MAHARASHTRA CHAMBER OF HOUSING INDUSTRY

Vs

UNION OF INDIA

V C Daga And S J Kathawalla JJ.,

Dated: July 23, 2010

Appellant rep by: Mr.Rafique Dada, Senior Advocate i/b. Parimal Shroff & Co
Respondent rep by: Mr.R.V.Desai, Senior Advocate with Mr.R.B.Pardeshi

Service Tax – Construction Service - Constitutional Validity of
Finance Act 2010 Amendment challenged – No coercive steps till next
hearing: Notice issued to Attorney General of India

ORDER

P.C.

Heard.

Perused petition.

2. Arguable questions are raised in the petition with regard to the
constitutional validity of Section 65(30a) read with Section
65(105)(zzp) and Section 65(105)(zzzh) read with Section 66 of the
Finance Act,1994, as amended by the Finance Act, 2010 which needs
consideration.

3. Rule.

4. Since the constitutional validity of the aforesaid provisions has
been challenged, issue notice to the Attorney General of India along
with respondent Nos.2 & 3, returnable on 3rd August,2010. In the
meantime, until next date of hearing , no coercive steps shall be
taken against the petitioners for the recovery of service tax in
relation to the provisions in question, but it is clarified that
assessments may proceed in accordance with law.

5. Mr.R.V. Desai, Learned Senior Counsel waives service on behalf of
respondent Nos.4 to 6.

5. To be heard along with Writ Petition (L) No.1476 of 2010. Stand
over to 3rd August, 2010.

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