TaxTMI 
TaxTMI 
2025 (6) TMI 1334
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....Ankit Shah for the Respondents in the Special Civil Application No. 2086 of 2025. Heard learned advocate Mr. Puneet Aggarwal with learned advocate Ms. Mansi Khurana and learned advocate Mr. Prateek S. Bhati for the Petitioners and learned advocate Mr. Deepak Khanchandani for the Respondents in the Special Civil Application No. 4065 of 2025. 2. Both these petitions involve a common issue and the prayers made therein are also similar. Consequently, both these petitions were heard analogously and are being disposed of by this common judgment and order dated 30.04.2025. 3. Rule returnable forthwith. Learned advocate Mr. Ankit Shah waives service of notice of rule on behalf of the Respondents in Special Civil Application No. 2086 of 202....
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..... Life Science Chemicals, and the said industrial plot was formally transferred from the partnership firm to her sole proprietorship vide a final transfer order dated 27.10.2017. 6.3 Pursuant to the said transfer, a notice bearing DIN 20240665VB00000069E4 dated 26.06.2024 came to be issued to the erstwhile partnership firm M/s. Life Science Chemicals for recovery of government dues. The notice sought payment of GST at the rate of 18% on the alleged consideration of Rs. 20,78,550/- purportedly received by Mr. Anishaben Sureshbhai Paneliya for the transfer of leasehold rights in respect of Plot No. 905-11-20 at GIDC Estate, Panoli, Ankleshwar. 6.4 In response thereto, the taxpayer submitted a reply asserting, inter alia, the following c....
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....equiring her to show cause as to why GST should not be levied on the consideration amount involved in the transfer of leasehold rights. It is the case of the Petitioner that she was unaware of the issuance of the said show cause notice and, consequently, could not respond to the same. 6.6 It is contended by the Petitioner that, without taking into account the Petitioner's status as a sole proprietorship concern and the transferee of the subject plot, Respondent No. 3 proceeded to pass an order under Section 74 of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017. The order dated 07.11.2024, issued in Form GST DRC-07, determined a tax demand of Rs. 2,61,144/-, along with interest of Rs. 3,32,648....
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.... e. Pass any other order(s) as this 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;" 8. Learned advocate Mr. Hardik. Vora for the Petitioner has submitted that, Section 7 of the Central Goods and Services Tax Act, 2017 delineates the scope of "supply." In terms of Section 7 (1) (a) of the CGST Act, read with Entry No. 2(a) of Schedule II thereof, any lease, tenancy, or license to occupy land is expressly classified as a supply of service. Conversely, Section 7 (2) (a), when read in conjunction with Entry No. 5 of Schedule III, stipulates that the sale of land and, subject to....
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.... (SCA No. 11345 of 2023) dated 03.01.2025 reported in 2025 SCC OnLine Guj 537, 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/sale/ transfer of benefits arising out of "immovable property" by the lessee-assignor in favour of third party-assignee who would become lessee of GIDC in place of original allottee-lessee. In such circumstances, provisions of section 7 (1) (a) of the GST Act providing for scope of supply read with clause 5(b) of Schedule II and Clause 5 of Schedule III would not be applicable to such transaction of assignment of leasehold rights ....