Satya Developers Pvt Ltd vs Pearey Lal Bhawan Association on 13 October, 2015
18. A bare perusal of this Clause would show that the liability of the
licensor has been fixed for the payment of municipal taxes, Cess, duties
etc.and the increase in lease/sub lease charges is also been placed on the
licensor. However, the service tax is not charged by the municipal
I.D.B.I Bank Ltd. Page No. 14/25
Vs.
Lalit Mohan Madhan
corporation or the local body but the same has been leved by the
Government. Hence, it cannot be said that the liability to pay the service
tax was of the licensor/defendant. Further, the service tax was introduced
by the government only w.e.f 01.06.2007 i.e. after execution of the MOU
Ex.P-7 and plaintiff bank had already taken the possession of the suit
property. The MOU does not contemplate the liability of the tax which
was to be imposed in future but it determines the liability of the taxes
already in existence and which may increase subject to suit property
taken on rent by the plaintiff bank. Hon'ble Division Bench of High
Court of Delhi in "Satya Developers Pvt. Ltd. (Supra)" while dealing
with a similar situation and after examining the various documents and
law laid down by the Hon'ble Supreme Court held in para 26 and 27 as
under:-