2019 (4) TMI 1695

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.... by the State Government and various other Members i.e. Secretary to the Government of Madhya Pradesh or their nominees. 2. Government of Madhya Pradesh wanted to develop a piece of land located in Bhopal district and the Deputy Secretary of Government of Madhya Pradesh, Ministry of Housing and Environment issued a letter to the appellant for clearance of the land in question, which was originally in possession of juggi cluster. The appellant was also to do the bidding of the said property to the highest bidder for recovery of Bhoo Bhata. The said bidding was done by the appellant to one M/s R.K. Investment Pvt. Ltd., Bhopal at a particular price in the form of premium as also at specified annual ground rent (Bhoo Bhata). The amounts so co....

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.... the State Government, under its authorisation. As such, the consideration received by them from bidder cannot be held taxable in their hand inasmuch as there is no such consideration retained by them. Learned Advocate has also drawn our attention to another order of the Commissioner in the case of M/s Bhopal Vikas Pradhikaran being Order-in-Original No. 17/Commissioner/ST/BPL-I/2018 dated 30.8.2013 wherein while dealing with an identical situation, the Commissioner has observed as under : "However, the lease rent is not a rental in ordinary scene, it is a levy of the Government called "Bhu Bhatak" or "Land Revenue" collected on behalf of the Government of MP, Department of Revenue and they have made payment of the same amounts to the Gov....

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..... We further note that the Commissioner in the present order has observed as under : "They have also not adduced any documentary evidence in form of any challan etc. to establish that the amount of 'lease rent' collected by them was deposited in the 'Consolidated Fund' of State. From the above facts, it is also clear that they have been established to carry out any function entrusted to a municipality under article 243W of the Constitution. Furthermore, by no stretch of imagination, the activity of 'renting of immovable property' can be said to be any function entrusted to a municipality under 243W of the Constitution. Their activities are also not in the nature of any 'sovereign / public authority', purely in public interest and undertak....