TMI Blog2019 (3) TMI 1950X X X X Extracts X X X X X X X X Extracts X X X X ..... f allotting industrial space and Lessee being the entity not involved into developing multiple industrial plots, the benefit of the said Notification is not applicable to the Appellant. It is an established and settled position of law that the conditions of the Notifications are required to be strictly interpreted. As the Appellant does not meet all the requirements stipulated in the- Notification, the benefit of the said Notification will not be available to them. On a careful reading of the correct position of the statute vis-a-vis the appellant's contention, it clearly emerges that the language employed in the statute as discussed in para 10 (i) to (iv) are plain and unambiguous and it amply conveys the legislative intent. The appellant does not satisfy the criteria laid down in Sr. No. 41 of the Notification No. 12/2017 (CGST (Rate) dated 28/06/2017) as amended by Notification No. 32/2017 (CGST (Rate) dated 13/10/2017. The Ruling given by AAR-Goa being consistent with the extant statute is maintained. The appeal is rejected. - GOA/AAAR/01/26-3/2018-19/4591 - - - Dated:- 22-3-2019 - SHRI DIPAK M. BANDEKAR, AND SHRI VASA SESHAGIRI RAO, MEMBER PROCEEDINGS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption notification is wide enough to cover the transaction as exempt. (iii) The AAR-Goa failed to consider that the transaction is that of upfront one time premium and not merely a periodic lease rental collected in advance. (iv) The AAR-Goa has wrongly restricted the exemption to those entities notified in the Goa Industrial Development Act,1965 which is not envisaged in the exemption notification. (v) The AAR-Goa wrongly applied the cases that are different from the facts of their case. (vi) The AAR-Goa wrongly applied the facts of the case which in fact when applied correctly shows that their case is very much eligible for the exemption. 6. The Appellant further made additional submissions that the cases of 1) Greater Noida Industrial Development Authority and 2) Builders Association of Navi Mumbai and Anr are currently in appeal in Honorable Supreme Court. 7. Personal Hearing was held on 30/01/2019. Shri Parimal Kulkarni, of M/s PGK Co., Chartered Accountants, attended the hearing on behalf of the appellant and submitted their written contention. He sought time to make additional submissions which was granted. He was asked to make his additional submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... truction Requirements (c) Operate and Maintain the permanent Project Facilities as per the standards set out in Schedule 4: Operation and Management Requirements 2.1.2. The Concessionaire would design, procure, finance, construct, operate and maintain the project during the concession period on a design, build, finance, Operate and Transfer (DBFOT) Concession basis. The project would be transferred back to the Authority at the end of the Concession Period. 12. Further, para 2 of the Schedule II of the CGST Act, 2017 (Section 7) has treated following activities as supply of goods or services;- 2. Land and Building (a) any lease, tenancy, easement, licence to occupy land is a supply of services; (b) any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services. A careful reading of the impugned agreement between M/s. Goa Tourism Development Corporation and M/s. Myrayash Hotels Private Limited, leads one to the only conclusion that the long term lease in question is well covered within the criteria of supply as specified in the Schedule II ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's entitlement to exemption, the Lessee should be the entity involved in the activity of developing a land / particular mass of area into multiple industrial plots which in turn would be allotted to different potential industrialists. However, in the instant case, the Lessor is not the entity involved for development of any Industrial or Financial Business area but for promotion of tourism and allied activities simply. It has leased one of its properties to a Lessee who is a single beneficiary and not the developer who in turn would develop and transfer plots to many industrial aspirant's or others involved into Financial Business Area. The Lessee would develop the property into a project which in turn will be providing the accommodation services and hence the property is a 'Commercial property' not an 'Industrial Plot'. Thus, Lessor being not involved in the activity of allotting industrial space and Lessee being the entity not involved into developing multiple industrial plots, the benefit of the said Notification is not applicable to the Appellant. 18. Coming to the ratio of the decisions cited by the Appellant, the judgment in the case of Greater Noid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n deals with grant of, long term lease of thirty years, or more. In the present case, the lease is for more than 30 years, hence the condition is fulfilled. (ii) The lease should be of industrial plots or plots for development of infrastructure for financial business. The plot is not an industrial plot either for development of infrastructure or for financial business. It is restricted solely to be used by M/s Myrayash Hotels Private Limited for their own business. M/s Myrayash Hotels Private Limited are not a developer but are themselves benefitting from the lease. It is not the case of the Appellant that M/s Myrayash Hotels Private Limited were required to develop an infrastructure that could be put to use by providing the same to other entities either for development of infrastructure or for financial business. Thus, this condition is not fulfilled. (iii) The lease should be provided by, the State Government industrial Development Corporation or Undertakings or by any other entity having 50 per cent or more ownership of Central Government, State Government, Union Territory . This condition is being met as the Appellant is an undertaking I entity having more ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
