DEVYANI INTERNATIONAL LTD. A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956, REP. BY ITS FINANCE EXECUTIVE AND AUTHORISED SIGNATORY MR. DILIP NAIDU Vs. THE UNION OF INDIA (UOI) THROUGH THE SECRETARY MINISTRY OF FINANCE DEPA

JUDGEMENT

(1.) In these petitions, the Petitioner is a lessee of the schedule premises, He challenges the imposition of service tax on renting of course, prior to the amendment of Finance Act, 2010 what was permissible is, except for services provided other than by way of renting, the tax could be collected. But by the amendment, what is provided is service tax on renting itself. Hence, these petitions.

(2.) In so far as the question of imposition of service tax on renting is concerned, at the first instance, the tenant is not a 'Service Provider'. Secondly, the payment of service tax, even if it is held to be valid on renting, there is privity of contract between the landlord and the tenant.

(3.) In the circumstances, the Petitioner being only a tenant in occupation of the premise s which is let out by the landlord subject to the conditions in the contract, whether die landlord collects the rent and pays to the Revenue or the landlord pays out of the rent amount without passing the liability on to the tenant. Is a different aspect since the Petitioner is not a 'Service Provider' he has no locus stand to challenge the imposition of service tax on renting. As the 'tenant' does not fait within the definition of 'Service Provider' the petitions are disposed of as not maintainable,