TaxTMI 
TaxTMI 
2024 (3) TMI 44
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....on 104 of the Act, where the Authority finds that advance ruling pronounced by it under sub-section (4) of Section 98 or under sub-section (1) of Section 101 has been obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant as if such ruling had never been made. 5. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. 1. The applicant submitted a copy of Electronic Cash Ledger evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST Rules 2017 and SGST Rules 2017. 2.1 The applicant, a GST Registrant, is a Private Limited company under the Administrative control of 'C....
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....val. * The applicant themselves have admitted that the transaction in question, gets covered under 'Supply', but have referred to Sl. No. 41 of the exemption Notification No. 12/2017-CT dated 28.06.2017. * On perusal of the provisions relating to the said notification, it is seen that the same would be applicable to State or Central Government Industrial Corporations or Undertakings, or any Undertaking having 50% or more ownership of Central or State Government and engaged in granting of long terms lease of 30 years or more of Industrial plots, and hence the same is not applicable to the applicant. * Further, the transaction is not the transfer of lease hold rights of land as claimed by the applicant, but transfer of interest, i.e., Agreeing to part with the interest on the lease hold land held by the applicant to the buyer on receipt of consideration. * Accordingly, the activity undertaken by the applicant for which a consideration of Rs. 1.24 crores is said to have been received, is an activity of "agreeing to do an act", which is taxable under "Other Miscellaneous Services" with SAC 9997. * It was also informed that no case is pending or decided in any proceedings on....
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....er does it create fresh benefit from land other than the leasehold right. It is like a compensation for agreeing to do the transfer of the applicant's rights in favour of the assignee. * However, as per entry No. 41 of Notification No. 12/2017-CT (Rate) dated 28.07.2017, GST exemption on the upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for long term lease of 30 years, or more of industrial plots or plots for development of infrastructure for financial business is admissible irrespective of whether such upfront amount is payable or paid in one or more instalments, provided the amount is determined upfront. Accordingly, the description of services in the subject matter, is to be read as long term leasing services, on which exemption is available. 6.1 The applicant, after consent, was given an opportunity to be heard in person on 03.11.2023. Mr. Mahesh Bandre, Chartered Accountant appeared for Personal Hearing on being authorized by the Applicant. 6.2 He furnished additional submissions during the personal hearing, and stated that the transfer of rights of the land to the third party was done during 2022 and a payment of....
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....aring and the comments furnished by the 'CENTER' Tax Authorities. The applicant filed advance ruling application under Section 97(2) of GST Act, 2017. 7.2 From the submissions made at the time of filing the application, it is seen that the applicant had a factory at B-26(B), SIPCOT Industrial Estate, Gummidipoondi, Tarnilnadu-601201, which was allotted by SIPCOT on long term lease. However, as the applicant had to relocate their business operations to Plot No.B-700, Indospace Industrial Park, Block B, Oragadam Walajabad Road, Panruti, Kancheepuram, Tamilnadu-631604, they transferred building, electric equipment and lease hold rights of lands to Kanta Flex (India) Private Limited, after receiving necessary approval from State Industries Corporation of Tamil Nadu Limited (SIPCOT). As per the Memorandum of Understanding dated 19.09.2021 entered into by the applicant with M/s. Kanta Flex, a total consideration of Rs. 1.63 crores, is to be received by the applicant, out of which an amount of 8.1.24 crores relates to the transfer of leasehold right in land. Under these circumstances, the applicant had sought an advance ruling, as to 1. Whether the subsequent transfer of State Industri....
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....00 8.3 As per the Letter dated 30.03.2022 of SIPCOT, the SIPCOT had accorded approval for transfer of leasehold rights of the property in question, based on the applicant's request. The important conditions imposed by SIPCOT, amongst various other conditions for approval, were :- * (Sl. No. 2) - The new incumbent (M/s. Kanta Flex) shall execute Modified Lease Deed (MLD) at their cost within 45 days from the date of approval of draft MLD by SIPCOT; * (Sl. No. 7) - The new incumbent shall furnish an undertaking with regard to payment of service tax in the prescribed format in Rs. 20/- non-judicial stamp paper before execution of Modified Lease Deed; * (Sl. No. 8) - All other conditions of Allotment order and Lease Deed executed by M/s. Multiarc India Pvt. Ltd. and Modified Lease Deed executed by M/s. Ionbond Coatings Pvt. Ltd, in respect of the subject plot shall apply mutatis mutandis. 8.4 From the 'Facts' of the case, furnished by the authorized representative as undertaken during the personal hearing, the following points were seen to have been highlighted, viz., * The SIPCOT has originally executed the agreement with Multiarc India Pvt. Ltd. vide allotment Order No. AD5....
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....n question, have been carried out already, i.e., before the filing of application dated 29.12.2022 by the applicant, viz., * The Memorandum of Understanding between the applicant (transferor) and M/s. Kanta Flex (transferee), is dated 19.09.2021. * The Letter of SIPCOT, which extends approval for transfer of leasehold rights on land from the transferor to the transferee, is dated 30.03.2022. * The booking entry relating to the invoice reported to have been raised by the applicant on the transferee, is dated 29.08.2022. * The payment of entire consideration towards leasehold transfer of land along with other amenities, is seen to have been completed by 07.05.2022. This apart, it is also presumed that the execution of Modified Lease Deed by SIPCOT in favour of M/s. Kanta Flex, and the handing over of property, had also been carried out in the immediate aftermath of the approval of SIPCOT (dated 30.03.2022), and the payments made (dated 07.05.2022). 8.7 It may be noted that as the financial transactions relating to the instant issue, have been carried out in its entirety by 07.05.2022, i.e., the date of last payment, any liability arising out of the taxability or otherwise, ....