2025 (5) TMI 727 - HC - GST

Challenge to N/N. 4/2018-Central Tax (Rate) dated 25th January 2018 issued by Respondent No. 1 and N/N. 4/2018-State Tax (Rate) dated 28th February 2018 - Supply or not - development rights under a revenue sharing agreement - HELD THAT - As far as interim reliefs are concerned it is found that a similar issue is already pending in this Court in the case of Nirmal Lifestyle Developers Pvt. Ltd. Vs. Union of India Ors. 2025 (4) TMI 809 - BOMBAY HIGH COURT . In that case also for the reasons more particularly stated in the order dated 9th April 2025 this Court granted interim relief to the Petitioner. Since one of the issues raised in the present Petition is similar to the one raised in the case of Nirmal Lifestyle Developers Pvt. Ltd. the Petitioner would be entitled to interim relief. In these circumstances there will be interim relief by restraining the Respondents from acting in furtherance of the impugned order dated 27th January 2025. The Respondents are directed to file their Affidavit-in-Reply within a period of 4 weeks from today and serve a copy of the same on the Advocates for the Petitioner - petition disposed off.

Summary

The Bombay High Court in the present Writ Petition challenges notifications no. 4/2018-Central Tax (Rate) and no. 4/2018-State Tax (Rate) as ultra vires Articles 14, 19(1)(g), 246A, and 265 of the Constitution and Sections 7, 148, and Schedule III of the CGST/MGST Acts, 2017. A key legal issue is whether development rights under a "revenue sharing" agreement constitute a "supply" of services taxable under GST (Section 7 read with Section 9) or a "sale of land" exempt from GST as per Articles 246/246A and Schedule III of the CGST Act.The Court found that "arguable questions" are raised and accordingly issued Rule. Noting that a similar issue is pending in Nirmal Lifestyle Developers Pvt. Ltd. v. Union of India (Writ Petition (L) No. 11011 of 2025), where interim relief was granted, the Court extended similar interim relief here by restraining Respondents from acting on the impugned order dated 27th January 2025.The Respondents are directed to file Affidavit-in-Reply within four weeks, with the Petitioner permitted to file Affidavit-in-Rejoinder within two weeks thereafter. The Petition is tagged with the related Writ Petition (L) No. 11011 of 2025. The order emphasizes procedural compliance and is digitally signed for official use.