TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 436
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....lidity of show cause notice dated 23.09.2025 issued under Section 74 of the State Goods & Service Tax Act, 2017 (hereinafter referred to as 'the Act' for short) in form GST DRC 01, inter alia considering the assignment of lease hold rights by the petitioner in favor of M/s. Metlax International Private Limited as supply of service under Section 7(1)(a) of the Act and classified under Heading 9972 of Tariff Code. 5. The brief facts leading to filing of the present petition is that Gujarat Industrial Development Corporation (hereinafter referred to as 'GIDC'), which is established under the Gujarat Industrial Development Act, 1962, acts as a nodal agency of Government of Gujarat for the purpose of development of industrial areas /estates. GIDC gives lands to industries on lease, generally for a period of 99 years. GIDC issues an allotment letter to the industry desiring to take plots developed by the GIDC. The allotment letter would set various terms and conditions on which the allotment is being made, including the method and manner in which premium is required to be paid. 5.1 The petitioner was allotted a plot no. 1401/2, ad-measuring 14,105.28 square meters, situated at GIDC....
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....2019 by and between the petitioner, the Vendor and the PNB respectively which elucidated the modalities in which the consideration was to be paid by the Vendor to the PNB as against the OTS which was communicated to the petitioner on the even-date. Concomitant to the tripartite agreement, the petitioner sought permission from GIDC to transfer the plot to its Vendor and accordingly, the GIDC accorded the permission to the petitioner to transfer the plot. Thus, keeping at the epicenter the contents of the tripartite agreement and the sanction to transfer, the plot which was mortgaged by the petitioner came to be transferred to its Vendor and a registered deed was executed therein on 20.06.2019. 5.3. It is the case of the petitioner that on 07.08.2025, the petitioner received summons from the respondent under section 70 of the Act soliciting the details as regards the copies of the documents of the sub-lease of the plot which was effectuated between the period ranging from 01.04.2019 to 31.03.2020. The petitioner, honoring the directions of the summons provided respondent the copies of the tri-partite agreement dated 22.03.2019 and the sale deed dated 20.06.2019 vide its letter dat....
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....efers to the immovable property regarding works contract services and goods or services both received by taxable person for construction of an immovable property. Section 12 of the Integrated Goods and Service Tax Act,2017 (for short 'the IGST Act') refers to place of supply of services in reference to section 2(120) of the GST Act which applies to the IGST Act also and as per sub-section(3) of section 12, place of supply of services in relation to immovable property includes services provided by architect, interior decorators etc. and includes any service provided by way of grant of right to use immovable property or for carrying out or coordination of construction work by way of lodging accommodation by a hotel, by way of accommodation in any immovable property for organizing marriage or any services ancillary to the services referred to in other clauses, shall be the location at which the immovable property is located. XXX XXX XXX 61. A bare perusal of the above Statement of Object and Reasons, clearly indicates the legislative intention to subsume all the existing indirect taxes in a single tax called Goods and Services Tax to be levied on supply of goods or s....
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....d "property" which depends on the context with which it is used. Firstly, it is applied to the external things that are the objects of rights or estates that is things that are the object of the ownership and secondly, it is applied to the rights or estates that a person may acquire in or to things. Therefore, in strict legal parlance "property" is used to designate a right of ownership or an aggregate of rights that are guaranteed and protected by the Government and has been defined as the right of any person to possess, use, enjoy and dispose of a thing and to exclude everyone else from interfering with it and more succinctly, it has been defined as any vested right of any value which refers to both the actual physical object and various incorporeal ownership rights in the object i.e. plot of land and building thereon in facts of the case as the right to possess, to enjoy the income from, to alienate or to recover ownership from one who has obtained title to the object. 65. Under the GST Act and IGST Act relating to Rate of Tax, Exemption, Reverse Charge Scheme and other matters concerning supply of services are covered by notifications issued in exercise of powers confe....
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....age 106, is referred to as assignment means "is a transfer or making over to another of the whole of any property, real or personal, in possession or in action, or of any estate or right therein". It has further been held that assignment would include "The transfer by a party of all its rights to some kind of property, usually intangible property such as rights in lease, mortgage, agreement of sale or a partnership." Considering such definition of assignment, assignment of leasehold rights is also subject to levy of stamp duty being transfer of "immovable property". 68. The Hon'ble Apex Court in case of Byramjee Jeejeebhoy (P) Ltd vs State Of Maharashtra reported in AIR 1965 Supreme Court 590 while holding as to what a lease contemplates has observed that a demise or a transfer of a right to enjoy land for a term or in perpetuity in consideration of a price paid or promised or services or other things of value to be rendered periodically or on specified occasions to the transferor. The words "transfer of right to enjoy such property" indicates that all the rights of ownership are not transferred. Therefore, the significance of those words as indicative of the limited estat....
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....er a detailed discussion decided to defer imposition of tax on land and building and thereafter, clause 5 of Schedule III of the GST Act clearly excludes sale of land and building which fortifies the intention of the GST Council not to impose tax on transfer of immovable property continuing the underlying object of erstwhile service tax regime. XXX XXX XXX 78. Moreover, in the facts of the various cases, GIDC had only allotted the plot of land to the lessee who constructed the building and developed the land to run the business or industry for which such plot of land was allotted. Therefore, what is assigned by the lessee/assignor to the assignee for a consideration is not only the land allotted by GIDC on lease but the entire land along with building thereon which was constructed on such land. The entire land and building is therefore, transferred along with leasehold rights and interest in land which is a capital asset in form of an immovable property and the lessee/assignor earned benefits out of land by way of constructing and operating factory building/shed which constitutes a "profit a pendre" which is also an immovable property and therefore, would not be s....