TaxTMI 
TaxTMI 
2026 (10) TMI 619
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.... 1. Adv. Vinay Kansara (For Appeal No. APL/59/SRT/2026), 2. None (for Appeal Nos. APL/82/SRT/2026 and APL/83/SRT/2026). ORDER PER: SHRI SANJAYKUMAR DWIVEDI, MEMBER (JUDICIAL) 1. These three appeals have been filed by the department against Orders-in-Appeals by which the Appellate Authority has set aside the demand of GST on assignment of leasehold rights in the plots of land allotted on lease by the Gujarat Industrial Development Corporation (GIDC), to a third party. The Respondents are the assignees, and the department has demanded tax from them under the reverse charge mechanism. In all these cases, the Appellate Authority has followed the judgment dated 03/01/2025 of Hon'ble Gujarat High Court in Gujarat Chamber o....
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....ies). 3.1. Briefly stated, the facts are that in the year 1990 GIDC allotted Plot No. 7311 situated at GIDC Industrial Estate, Ankleshwar to one Mr. Vinay R S Jain under a license agreement. Later, the Central Excise and Customs department attached the said property for recovery of the dues of Tulsi Alloys Pvt. Ltd., who had defaulted in payment of Central Excise and Service Tax. 3.2. An e-auction was conducted by MSTC Ltd. on behalf of the Central Excise and Customs department on 26.04.2018. One M/s. Raj Enterprise emerged as the successful bidder and was declared the purchaser. Raj Enterprise, in turn, transferred its rights to the Respondent Pragna Chemical Industries, by nominating it the person to whom the property was to be tran....
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....t High Court in Gujarat Chamber of Commerce and Industry, supra. 4. Mr. Maya Shanker Prabhat, learned Superintendent (Authorised Representative) appearing for the department reiterates the grounds raised in the appeal memo and submits that the appeals were filed because the department had filed a Special Leave Petition (SLP) before the Hon'ble Supreme Court against the judgment in Gujarat Chamber of Commerce. He further submits that although the SLPs filed by the department have since been dismissed by the Hon'ble Supreme Court, the department is in the process of filing a review petition. 5. Mr. Vinay Kansara, learned Advocate appearing for Pragna Chemical Industries, submits that the judgment of the Gujarat Chamber of Commer....
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....n of utilisation of input tax credit to discharge the liability of GST on such transaction of assignment would not arise. 85. The petitions accordingly succeed and impugned show cause notices and orders in original or appeal as the case may be, are hereby quashed and set aside. Rule is made absolute to the aforesaid extent. No order as to costs. 7.1. The issue also came up before the Hon'ble Bombay High Court in Aerocom Cushions Private Limited vs. Assistant Commissioner (Anti-Evasion), Nagpur [2026:BHC-NAG:348-DB]. Agreeing with the decision of the Hon'ble Gujarat High Court in Gujarat Chamber of Commerce and Industry, supra, Hon'ble Bombay High Court by its judgment dated 09.01.2026 held: 13. ......... We ....