GST on assignment of leasehold rights faces challenge as interim stay protects pending and passed adjudication steps.

GST liability is questioned on the assignment of leasehold rights in a MIDC plot, together with buildings constructed on it, for lump sum consideration, on the basis that the transaction is a transfer of leasehold rights rather than a taxable supply. The Court noted that an earlier Division Bench view of another High Court supported that position and that no contrary view was placed before it, so the issue was treated as requiring further consideration. Interim protection was granted for the petitioners' listed entities: adjudication of show cause notices remained stayed, and any adjudication orders already passed also remained stayed pending further hearing.

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Issues: Whether GST can be levied on the assignment of leasehold rights in a plot of land allotted by MIDC, together with the buildings constructed thereon, in favour of a third party for lump sum consideration, and whether adjudication proceedings and adjudication orders in related matters should remain stayed pending further hearing.

Analysis: The petition raised a GST challenge on the premise that the transaction was an assignment or transfer of leasehold rights and, on the petitioners' case, stood covered by an earlier Division Bench view of another High Court. The Court recorded that one High Court had already taken that view and no contrary view was placed before it. It therefore treated the issue as one requiring consideration and granted interim protection in relation to pending and already-passed adjudication steps concerning the entities listed in the petition.

Outcome: Leave was granted to implead the Director General of GST Intelligence. In matters concerning the entities listed in the petition, adjudication of show cause notices remained stayed, and any adjudication orders already passed also remained stayed. The petition was directed to be listed with connected matters for directions and future hearing.

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