NEW BHARAT ENTERPRISES Vs. AIRPORTS AUTHORITY OF INDIA

JUDGEMENT

(1.) HEARD Mr.K. Doraisami, learned Senior counsel for the petitioner and Mr.Vijay Narayan, learned Senior Counsel for the respondent. By consent, the writ petition itself is taken up for final disposal.

(2.) THE said writ petition is filed apprehending non settlement of the amount by the respondent, who is liable to refund the deposit amount of Rs.6,16,74,216/- made pursuant to the lease agreement and is likely to forfeit the amount. THErefore, the present writ petition has been filed.

(3.) IN respect of the licence fee payable by the petitioner based on the said lease, there has been some dispute regarding the liability to pay service tax as to whether the same has to be paid by the licensee directly or through the Airport Authority. The petitioner has already approached this Court by filing a writ petition in W.P No.45079 of 2006 challenging the said claim of service tax. Pending the said writ petition, the petitioner filed a Miscellaneous petition for interim injunction restraining the respondents from imposing or collecting service tax in any form on the license fee payable by the petitioner for car parking counter at INternational and Domestic Airport at Chennai and Madurai. This Court has granted an order of interim injunction on 22.11.2006 and the said writ petition is pending and admittedly, interim order also continues. INspite of the same, the impugned order came to be passed by the respondent directing the petitioner to settle the amount of Rs.4,57,11,957/- immediately and also furnish a fresh Bank Guarantee valid for a period of three years for an amount of Rs.4.37 crores in respect of Service Tax arrears disputed and covered under the order passed by this Court in W.P No.45079 of 2006.