S.RAVINDRA BHAT, J

1. These two suits involve determination of common questions of fact and law; they were accordingly heard together. The plaintiff claims declaratory and injunctive relief as to whether it or the defendant has to bear service tax liability in respect of the rents paid (by the defendant) and received (by the plaintiff). In addition, money decrees for specified amounts, is claimed.

2. The Plaintiff Society is owner of the building Pearey Lal Bhawan located at 2, Bahadur Shah Zafar Marg, (hereafter called “the suit premises”) and theprincipal lesseeof the land. The Plaintiff had entered into a registered Lease Deed on 09.10.2006 “first lease” with the Defendant, (hereafter “Satya Developers”) in respect of an area measuring 2818 sq. ft. on the ground floor of the premises Pearey at Lal Bhawan. On 16October, 2006, the parties entered into an Agreement for Maintenance of Common Services and Facilities in respect of the leased premises.

3. It is the common case of the parties that with effect from 1st June, 2007 the Central Government, by amending Chapter V of the Finance Act, 1994, levied service tax on the renting of immoveable property for business purposes.