Sanjay Kishan Kaul, J.

1. The appellant, Raghubir Saran Charitable Trust, is the owner of premises bearing no.E-10, Block-E, Inner Circle, Connaught Place, New Delhi, which was leased out to the respondent in pursuance to a Lease Deed dated 25.04.2007 for a period of 60 months, renewable at the sole option of the respondent for a further period of 48 months on the same terms and conditions other than the rent which was specified with increases for different periods of time. The lease stood terminated by consent of both the parties on 30.09.2011 and the possession of the premises was handed over to the appellant.

2. The dispute which arose inter se the parties was a sequitur to the Finance Act, 2007 which introduced an amendment in the Finance Act, 1994 incorporating in Section 65 (105), a sub-Clause (zzzz). The effect of this clause was the imposition and attraction of service tax qua rent received from renting of immovable properties for commercial purposes.

3. The appellant as a consequence of the aforesaid, included service tax element of 12.36% on all rental bills and cess thereon from June, 2007 onwards.

4. The respondent, however, refused to pay the service tax com