THE Service Tax on ‘Renting of Immovable Property' and the Home Solutions case, subject of many a scholarly analysis in our portal, is again in the news. The Supreme Court has stayed the operation of the Delhi High Court judgement dated 18/5/2010 in WP(C) No. 3398/2010 – 2010-TIOL-341-HC-DEL-ST.
The Delhi High Court had in its earlier order reported in 2009-TIOL-196-HC-DEL-ST, had categorically concluded that renting of immovable property by itself cannot be regarded as a service.
A determined Government sought to undo the Delhi High Court judgement in the last budget, which was again promptly challenged. The High Court was not impressed and granted stay to the petitioners in respect of renting of immovable property. Revenue naturally took the matter to the Supreme Court and the Supreme Court has stayed the operation of the Delhi High Court judgement, till the next date.
The next hearing is on 20.01.2011. So the Revenue Department has a whole week to collect the Revenue.
Interesting days ahead.