TaxTMI 
TaxTMI 
2025 (5) TMI 539
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....tant Government Pleader Ms. Shrunjal Shah for the Respondent No.3. 2. Rule returnable forthwith. Learned advocate Mr. Ankit Shah waives service of notice of rule for and on behalf of the Respondent Nos. 1 and 2 and learned Assistant Government Pleader Ms. Shrunjal Shah waives service of notice of rule for and on behalf of the Respondent No. 3. With the consent of the learned advocates for the respective parties, the matter is taken up for hearing, as the issue involved is quite brief. 3. The brief facts of the case are as follows: 3.1 The Petitioner is a Company engaged in manufacturing of polymers and composite products. TPL Plastech Ltd. (TPL) is a subsidiary of the Petitioner, with the Petitioner holding a 75% shareholding in th....
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....he intimation sought payment of GST amounting to Rs. 63,93,583/-, along with applicable interest and penalties, based on an alleged transaction value of Rs. 3,55,19,904/-. The Petitioner acknowledged receipt of the intimation on 26.07.2024 and subsequently requested for an adjournment of 30 days. 3.7. On 31.07.2024, Respondent No. 3 issued a Show Cause Notice in Form DRC-01, pursuant to Section 74 of the GST Act, directing the Petitioner to provide an explanation as to why GST amounting to Rs. 63,93,583/- should not be demanded and recovered, along with interest and penalties, on the transfer fee received for the leasehold rights of the GIDC plot. 3.8. Aggrieved by the said Show Cause Notice dated 31.07.2024, issued by the Respondent ....
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....s Hon'ble Court may deem fit and more appropriate in order to grant interim relief to the Petitioner; f. Any other and further relief deemed just and proper be granted in the interest of justice;" 4. Ms. Palak Kshatriya, learned advocate on behalf of Mr. Hardik Vora appearing for the petitioner has submitted that the assignment of leasehold rights of lands and buildings will not fall within the meaning of taxable supply and no GST can be levied under the GST Act as held by this Court in Gujarat Chamber of Commerce and Industry Vs. Union of India reported in [2025] 170 taxmann.com 251 (Gujarat). Ms. Kshatriya, learned advocate further submitted in Gujarat Chamber of Commerce has been followed in various decisions by this Cour....
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....s, of any kind or nature whatsoever, to the Second Party absolutely and for ever. The said Property being Plot No D-II/E/333 situated at Dahej II, Industrial Estate Survey no 197/P.198/P.200/P & 201/P, Village Galerulu, Taluka Vagra, District Bharuch, Gujarat shall be sold/transferred/ assigned "As is where is basis 2 The first & second party Jointly made online application for assignment Transfer of said open plot from the first parry to second party with GIDC Ankleshawar, Bharuh (Gujarat) on 18.03.2017 & received permission letter no GIDC/RM/ANK/TRF/PTO/DAH5/0001 dated 30.05.2017 for assignment/transfer of the open plot from the first party in favour of second party 3 The both party agreed mode of payment(subject to TDS ....
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....ay become due and payable to the Corporation in future as per the terms." 6.3. From the aforesaid, it is clear that the said Deed of Assignment is nothing but a complete transfer/sale of the entire leasehold rights in favour of the assignee by the present petitioner/original lesseee for valuable consideration. In such circumstances and factual premise, the decision of this Court in the case of Gujarat Chamber of Commerce (Supra) will squarely apply. In Gujarat Chamber of Commerce (Supra), this Court has held as under:- "83. In view of foregoing reasons, assignment by sale and transfer of leasehold rights of the plot of land allotted by GIDC to the lessee in favour of third party-assignee for a consideration shall be assignment/s....