Union Of India vs Bengal Shrachi Housing Development ...

The Supreme Court addressed the liability for service tax under the Finance Act, 1994, in the context of a lease agreement. The Court held that the service tax is primarily leviable on the lessee as the recipient of the service, affirming the lower court's decisions which interpreted Clause 6 of the lease deed accordingly. The Court concluded that the lessee, being the user of the premises, is responsible for the payment of service tax, thereby dismissing the appeal by the Appellants.