Hyderabad, June 09: A division bench of the AP High Court comprising Justice G Raghuram and Justice Naushad Ali directed the authorities not to collect service tax and stayed the collection of service tax with retrospective effect.
The bench made the interim order in a writ petition filed by Trent – the owners of Westside in the city. The petitioner challenged the legality of the the Finance Act 2010 under which the Central government imposed service tax on the factum of renting immovable property with effect from 2007.
The petitioner contended that the subject of imposing tax on immovable property was not available with the Central government and as such the tax collection was unconstitutional. It was further contended that in any event collection of tax retrospectively was illegal. Earlier service tax was only imposed on any service component of renting a premises.
Plea challenging excise policy admitted
A division bench of the AP High Court comprising Justice G Raghuram and Justice Naushad Ali on Tuesday took on file a public interest writ petition challenging the excise policy of the state government as also the provisions of the AP Excise Act 5 of 1997. It may be recalled that the Act was introduced by the Chandrababu Naidu government after the party was elected on an electoral promise to impose total prohibition in the state. The action of the government in retracing its policy was, however, upheld by a full bench of the High Court.
In the present writ petition the Act which permits manufacture, sale and thereby consumption of Indian Made Foreign Liquor was assailed as being in violation of the fundamental right of life guaranteed under the Constitution.
Even as counsel Krishnayya went hammer and tongs on the government policy, Justice Raghuram wondered how the court would examine a policy.
“All things on the other side of the Musi are not rejuvenated here,’’ he commented. The petitioner also complained that the alarming increase in the dependence on revenue from this source by the government and the steps bordering on Home delivery was in conflict with the Constitutional guarantees. The petitioner also sought a direction to the Union Government to impose total prohibition throughout the country. M. Narayana an unemployed person moved the petition in public interest. He referred to the notification of the year made by the government on May 6 and sought stay of all proceedings to which Justice Raghuram observed : Once you identify our jurisdiction we will go whole hog.
State’s plea on Gopannapalli lands dismissed
A division bench of the AP High Court comprising Chief Justice Nissar Ahmed Kukru and Justice PV Sanjay Kumar on Tuesday dismissed the writ appeal filed by the state government on the question of its power to re-examine the nature and ownership of about 80 acres of land at Gopannapalli near Gacchibowli on the outskirts of the city. Lands which were classified as patta lands since the 50s were sought to be reclassified as grazing land and thus effect the ownership of the occupants . A single judge had earlier quashed the notices in this regard and declared that the government could not be permitted to re-open the issue after over half a century. The said declaration, the bench said did not call for any interference. The bench accordingly dismissed the appeal of the state government.
——-Agencies