2025 (7) TMI 458

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....advocate Ms. Shrunjal Shah for respondent Nos. 2 to 4. 2. Rule returnable forthwith. Learned advocate Mr. Dipak Khemchandani waives service of notice of rule for and on behalf of respondent No.1 and learned advocate Ms. Shrunjal Shah waives service of notice of rule for and on behalf of respondent Nos.2 to 4. 3. Having regard to the controversy arising in the present petition in narrow compass, with the consent of learned advocates appearing for the respective parties, the matter is taken for final disposal today. 4. By way of the present petition, the petitioner has prayed for quashing and setting aside impugned order Reference No.ZD240225111984J dated 28.2.2025 passed by respondent No.4 under section 73 and Form GST DRC- 07 (Anne....

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....period from 1.4.2020 to 31.3.2021 and the amount received in lieu of the said sub- lease and GST paid for such transaction. 5.6 The petitioner was served with the show cause notice in FORM DRC-01 under Reference No.ZD241124067412S dated 26.11.2024 by respondent No.4 demanding Rs. 2,46,53,700/- as GST on the transfer of lease hold rights in favour of M/s Janani Incast on the premise that execution of the deed of assignment for the lease of a plot with the third party is considered as service and therefore consideration received under the MOU is considered as taxable value of supply of service and therefore is covered under the Notification No.11/2017 - State Tax (Rate) dated 30.6.2017 as per Entry No.16 Heading No.9972 as Real Estate Serv....

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....d the impugned order. 8. The issue involved in the present petition remains no more res integra. In the case of Gujarat Chamber of Commerce and Industries and others Vs Union of India, reported in 2025 (94) GSTL 113 (Guj), it is held that GST would not be leviable on the assignment of lease hold rights of plot or the land allotted on lease by the industrial concern and building constructed thereon by the lessee or its successor (assignor) to a third party (assignee) on payment of lumpsum because such an assignment by sale and transfer of leasehold rights of plot for a consideration would be assignment/sale/transfer of benefits arising out of immovable property by lessee - assignor in favour of third party - assignee who would become less....