TaxTMI 
TaxTMI 
2019 (3) TMI 1950
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....t sought an Advance Ruling in respect of the question whether GST is applicable on one time concession fees charged by the appellant in respect of their property at Anjuna, Goa, which is given to M/s Myrayash Hotels Pvt. Ltd for a long term lease of 60 years for development of infrastructure for financial business or private investment made on DBFOT (Design, Build, Finance, operate and Transfer) providing; exclusive right, license and authority to construct, operate and maintain the project. 2. The Appellant claimed exemption as per Sr. No.41 of the Notification No 12/2017 -Central Tax (Rate), dated 28/06/2017 as amended by Notification No. 32/2017 - Central Tax (Rate), dated 13/10/2017. 3. The Authority for Advance Ruling, Goa vide its Order no. Goa/GAAR/4/2018-19/2429 held that the service provided by the Appellant, does not satisfy the criteria mentioned at 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. Therefore, they are not entitled for the benefits of the said Notification (as amended) and the activity of long term lease is liable for levy of GST. 4. Aggrieved by the said....
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....velopment Corporation or Undertakings or by any other entity having 50 per cent, or more ownership of Central Government, State Government, Union Territory to the industrial units or the developers in any industrial or financial business area." 10. The following issues are carefully examined to understand the legislative intent.- (i) The event in the Notification deals with grant of, "long term lease of thirty years, or more." (ii) The lease should be "of industrial plots or plots for development of infrastructure for financial business." (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". (iv) The lease should be provided to, "the industrial units or the developers in any industrial or financial business area." 11. Before, discussing the merit of the appellant's contention, the concession agreement between M/s. Goa Tourism Development Corporation and M/s. Myrayash Hotels Private Limited was perused. The Para 2.1.1. & 2.1.2 of the said agreement have sketched ....
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....nment Authority. If that were the case, then the statute would not have used a specific term "...industrial plots or plots for development of infrastructure for financial business." 15. Therefore, to decide the issue, it is essential to understand what is an 'industrial plot' and 'financial business.' As the term "industrial plot" has not been defined in the GST Act, an inference must be drawn from the common meaning of the said term. Accordingly, this authority examined this issue in general parlance. An Industrial area in Goa is statutorily defined by the Goa Industrial Development Act, 1965. So it is evident the primary agency entrusted for development of Industrial plots in Goa is the Goa Industrial Development Corporation and not the Appellant. 16. The Appellant and its concessionaire i.e. M/s Myrayash Hotels Pvt. Ltd. are planning to construct a Hotel on the empty land for providing services covered by entry No. Heading No.5963 (Accommodation, food and beverage services). It could have also utilized the same plot for extending its activity to provide these services. Instead it has leased the plot for development of same asset which will again be utilized....
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....), Hon'ble Bombay High Court has held that if the context was the same, definitions could be lifted from one Act and used for interpretation in another. However, the Appellant has completely ignored the observation made by Hon'ble High Court in this judgment. The Hon'ble High Court has clearly upheld the taxability of leasing of the land. 19. Regarding Hon'ble Bombay High Court's judgment in the case of Builders Association of Navi Mumbai and Neelsidhi Realties Vs. Union of India and Others (WP. No. 12194 of 2017), the claim of the appellant is legally incorrect as that matter is identical to the present issue. In the said case City Industrial and Development Corporation of Maharashtra Limited had allotted plots to the various entities on long lease of 60 years for residential-cum-commercial constructions and three/four star hotel in Panvel and Navi Mumbai and collected one-time lease premium amount from them. The said writ petition was filed to challenge the demand of GST on this one-time lease premium. However, the Hon'ble High Court has considered this upfront amount taxable for GST as consideration for supply of service and dismissed the petition. ....