AIRPORT RETAIL PVT. LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The present writ petition has been filed by the petitioner challenging the constitutional validity of section 65(90a) read with section 65(105)(zzzz) of the Finance Act, 1994 as amended by the Finance Act, 2010 (hereinafter referred to as the 'Act') whereby service tax has been imposed inter alia on renting of immovable property by the Delhi International Airport Pvt. Ltd. ('DIAL') to the petitioner. The petitioner has also challenged the validity of the Notification No.24/2007 dated 22.05.2007 and Circular No. 98/1/2008/ST dated 04.01.2008 issued by the Ministry of Finance, Government of India.

(2.) During the pendency of the present petition, the petitioner further apprehended that the service tax authorities may seek to tax the licence fees paid by the petitioner to DIAL as 'taxable service' as defined under Section 65(105)(zzm) of the Act (hereinafter referred to as the 'airport services').

(3.) The question whether imposition of service tax on renting of immovable property is ultra vires the Constitution of India is no longer res integra in view of the decision by a Full Bench of this court in Home Solutions Retails Ltd. v. Union of India & Ors, 2011 24 STR 129 (hereinafter referred to as 'Home Solutions Retails II').