9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2025 (5) TMI 308 - HC - GSTLevy of GST on the transfer of leased land rights - suppression of GST payments - HELD THAT - Apparently the issue as raised by the petitioner is squarely covered by the judgement in the case of Gujarat Chamber of Commerce and Industries 2025 (1) TMI 516 - GUJARAT HIGH COURT . The reliance placed by the respondents on order in the case of Builders Association of Navi Mumbai 2018 (4) TMI 461 - BOMBAY HIGH COURT appears to be misplaced as the same pertains to the lease deed executed by the Authority in favour of the lessee and not a case of transfer of the rights once lease has been executed by the authority in favour of the lessee. Matter requires consideration - Issue notice.
The Allahabad High Court, presided by Chief Justice Arun Bhansali and Justice Kshitij Shailendra, addressed a petition concerning the levy of GST on the transfer of leased land rights. The petitioner, holding a 99-year lease from NOIDA and having transferred all rights after obtaining permission, challenged proceedings initiated under Section 74 of the Goods and Services Tax Act, 2017, alleging suppression in GST payment.The petitioner relied on the Gujarat High Court's ruling in Gujarat Chamber of Commerce and Industries v. Union of India (2025:GUJHC:1117-DB), which held that such transactions do not fall under Section 7(1)(a) of the Act, and contended that invoking Section 74 for alleged suppression was untenable. The respondents cited contrary authority from the Bombay High Court and the Supreme Court in Builders Association of Navi Mumbai v. Union of India (2018 (12) G.S.T.L. 232 (Bom.); 2024 (84) G.S.T.L. 417 (S.C.)).The Court observed that the Gujarat High Court decision squarely applies since the present case involves transfer of rights post-lease execution, distinguishing it from Builders Association, which dealt with lease deeds executed by authorities. The Court issued notice, directed filing of counter-affidavit within six weeks, and stayed recovery pursuant to the impugned order dated 31.01.2025 pending further orders.
|
