TaxTMI 
TaxTMI 
2026 (10) TMI 561
X X X X Extracts X X X X
X X X X Extracts X X X X
.... appeals have been filed by the department against Orders-in-Appeal by which the Appellate Authority has upheld the orders of the Adjudicating Authority. The Show Cause Notices had demanded GST on assignment by the Respondents, to a third party, of leasehold rights in the plots of land allotted on lease by the Gujarat Industrial Development Corporation (GIDC). Following the judgment dated 03.01.2025 of Hon'ble Gujarat High Court in Gujarat Chamber of Commerce and Industry vs. UOI (R/Special Civil Application No. 11345 of 2023) the Adjudicating Authority held that GST is not leviable on the transaction. The Appellate Authority upheld those orders. 2. Before proceeding further, we note that the names of the parties in the cause titles ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....neous Services" and that tax at the rate of 18% was leviable thereon under Sr. No. 35 of the Notification No. 11/2017-CT (Rate), dated 28.06.2017. The notice, accordingly, demanded tax along with interest. The value of the alleged supply was determined on the basis of the rate chart of GIDC by invoking Section 15(4) of the CGST Act, 2017 read with Rule 31 of the CGST Rules, 2017. The notice alleged that the Respondent knew that the transaction was not a sale of land but transfer of leasehold rights, which is leviable to GST; that the Respondent neither raised bill or supply nor reported the transaction in their GSTR-3B; and that the fact of receipt of consideration for the transaction was suppressed with intent to evade tax. It was further ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is leviable on assignment of leasehold rights of the plot of land allotted on lease by Gujarat Industrial Development Corporation (GIDC) and building constructed thereon, by the lessee or its successor (assignor) to a third party (assignee) on payment of lump-sum consideration considering the same as supply of service under the provisions of Central/State Goods and Services Tax Act, 2017. The Hon'ble High Court held: 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 partyassignee for a consideration shall be assignment/sale/ transfer of benefits arising out of "immovable property" by the lessee-assignor in favour of third part....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that the assignment by sale and a transfer of leasehold rights of the plot of land allotted by the Corporation like GIDC or MIDC 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 and in such circumstances, the transaction would not be subject to levy of GST in terms of the GST Act. 15. The writ petition is accordingly allowed. Show cause notice No.47/AC/GST/NGP-I/2024 dated 20- 12-2024 issued by respondent No.1 is quashed and set aside. 7.2. On the question of applicability of Sr. No. 35 of Notification No. 11/2017-CT (Rate), the Hon'ble Bombay High Court observed^1: 8. Our att....