DEELIGHT FORTUNE PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner has filed this Petition being aggrieved by the rejection of its application to settle its dispute under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (for short the "Scheme ") as enacted in Chapter V of the Finance (No.2) Act, 2019 (for short the "said Act ").

(2.) Brief facts are that the Petitioner, a company incorporated under the Companies Act, 1956 had given its commercial premises on leave and license basis to tenants from time to time. Vide Finance Act, 2010, Sec. 65(105)(zzzz) of the Finance Act, 1994, was amended wherein renting of property was made taxable with effect from 1/6/2007. Petitioner had applied and obtained Service Tax Registration from 16/6/2011 under the category of 'Renting of Immovable Property Service '. It is Petitioner 's case that it did not pay service tax to Service Tax Authority under the belief that mere letting out was not a service. However, due to the purported uncertainties about the legal provisions with respect to the levy of service tax during the period, the Petitioner raised invoices on the licensee for service tax which the licensee paid to the Petitioner from time to time.

(3.) Service Tax Voluntary Compliance Encouragement Scheme, 2013 (for short the "VCES ") was introduced by Chapter VI of the Finance Act, 2013. Pursuant to Sec. 106(1) of the VCES, a person could declare his tax dues for the period 1/10/2007 to 31/12/2012 and upon payment of service tax, there would be immunity from interest and penalty.