HOME SOLUTIONS RETAILS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this batch of writ petitions, the basic prayer is to declare Section 65(90a) read with Section 65(105)(zzzz) of the Finance Act, 1994 (for short "the Act") as amended by the Finance Act, 2007, Finance Act 2008 and Finance Act, 2010 as ultra vires the Constitution of India as there is colourable exercise of power inasmuch as the Legislature does not have the legislative competence in this field as it basically pertains to List II of the Seventh Schedule of the Constitution of India.

(2.) QUITE apart from above, various averments have been made in the writ petitions stating, inter alia, that Section 65(105)(zzzz) of the Act cannot really cover mere renting of immovable property in the net of service tax. It is averred that in the earlier definition of the said provision words used in relation of renting of immovable property were 'for use in the course or furtherance of business or commerce and the present provision has only made a different kind of contour but by such an amendment, it cannot be held that mere renting of immovable property without any kind of rider would tantamount to service and thereby would be covered in the ambit and sweep of service tax.