M K SUNDARAM Vs. ANDHRA BANK

JUDGEMENT

(1.) THE writ petition is filed to quash the proceedings of the respondent dated 15.10.2009 in his letter No. 019/9-PR/218 and to consequently direct the respondent to pay the arrears of service tax for the period from 1.6.2007 till date.

(2.) THE brief facts leading to the filing of the present writ petition are as follows: THE petitioner is the owner of the Commercial Building viz. Senthil Tower and the building was during 1999 leased out to the respondent for banking purpose subject to certain terms and conditions as per the lease deed dated 19.11.1999. During 2007, an amendment was introduced in Section 65 of Finance Act 1998 thereby assessee is liable to pay the service tax and the same was notified by the Government to the effect that the leasing out the building for commercial purpose was brought into the ambit of service tax only in the year 2007 by way of amendment in Section 65. Pursuant to such amendment, the petitioner as the owner, has paid the service tax from June 2007 at the rate of 12.36% on rent and has also sent a detailed letter to the respondent demanding payment of service tax along with the rent with effect from 1.6.2007 and the respondent has at last replied the owner through the letter dated 15.10.2009 which is impugned herein, in and under which the respondent rejected the claim of reimbursement of service tax on the ground that as per the subsisting agreement all the taxes are to be borne by the land lord and the management committee of Indian Bank Association advised the member banks not to reopen the existing contracts owing to the enactment. Aggrieved against the same, the petitioner/land owner has come forward with the present writ petition for the relief as stated supra.

(3.) I have considered the rival submissions made on both sides and perused the materials available on record.