Property Transfer Dispute Challenges GST Levy, Seeks Clarification on Land Sale vs Service Supply Classification Under Rule

HC issued notice challenging GST levy on leasehold property transfer. Petitioner argued transfer constitutes land sale, not service supply. Court allowed respondent to proceed with Show Cause Notice adjudication but prohibited final order without court permission. Case adjourned with notice returnable on 03.07.2024, to be heard with related matters.

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Issues involved: Challenge to Show Cause Notice for levy of goods and service tax on transfer of leasehold property.

Summary:
The petitioner challenged a Show Cause Notice dated 04.03.2024 issued by Respondent No.1 for levying goods and service tax on the transfer of leasehold property of the Gujarat Industrial Development Corporation. The petitioner argued that the transfer of leasehold property should not be considered as a supply of service under Schedule - IIA of the Central Goods and Service Tax Act, 2017, but rather as a sale of land upon transfer of leasehold rights. The petitioner pointed out that similar matters are pending before the Court for adjudication. In light of these submissions, the Court issued a Notice returnable on 03.07.2024. The respondent authority was allowed to proceed with the adjudication of the Show Cause Notice, but no final order could be passed without the permission of the Court during the pendency of the petition. Direct service through email was permitted, and the case was to be heard along with other related matters.

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