The issue raised in both the above writ petitions are covered by a judgment of this Court rendered by a Division Bench in W.P(C) No.11136/2011 dated 24.02.2012. The issue raised therein as also herein was the constitutional validity of Section 65(105)(zzz) and Section 66 of the Finance Act, 1994 providing for levy of Service Tax on renting of immovable property service. The Division Bench of this Court followed the decision in Home Solutions retails (India) Ltd. v. Union of India and others, reported in 2011 (45) VST 413. However, since the said judgment was impugned in SLP before the Hon'ble Supreme Court, the interim orders passed by the Hon'ble Supreme Court was made applicable to the petitioners. The Hon'ble Supreme Court had passed interim order in Civil Appeal pending before it interdicting any recovery of tax prior to 30.09.2011. But, however, making the service providers liable to tax subsequent to that date. WPC.19011/2009 & 19014/2009 : 2 :
Needless to say, the petitioners herein also shall be entitled to stay of any recovery of liability up to 30.09.2011. But, however, granting freedom to the Department to recover the liability, subsequent to the said date. Needless to say, any modification or final orders made by the Hon'ble Supreme Court in the Civil Appeal pending before it would be applicable to the petitioners also. If the petitioners are mulcted with any liability and the petitioner seeks for an installment prayer, the same shall be favourably considered by the Department.
Writ petitions are disposed of. No costs.
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(K. VINOD CHANDRAN, JUDGE) jma //true copy// P.A to Judge