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IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH
ANIL L. PANSARE, NIVEDITA P. MEHTA
Aerocom Cushions Private Limited – Appellant
Versus
Assistant Commissioner (Anti-Evasion), CGST & CX, Nagpur – Respondent
Headnote: Read headnote
JUDGMENT :
ANIL L. PANSARE, J.
1. Heard.
2. Issue Rule, returnable forthwith. Mr. K.K. Nalamwar, learned Counsel waives service of Rule on behalf of the respondent. With consent of learned Counsels for the parties, the petition is taken up for final hearing.
3. The challenge is to the show cause notice dated 20-12-2024 issued by respondent No.1 calling upon the petitioner to show cause as to why goods and services tax amounting to Rs.27,00,000/- should not be demanded and recovered from the petitioner under sub-section (1) of Section 74 of the Central Goods and Services Tax Act, 2017 (for short “Act of 2017”) towards non payment of GST on transfer of leasehold rights.
4. The notice has been issued under Read more document
The assignment of leasehold rights does not qualify as a supply of services under the Central Goods and Services Tax Act, 2017 and is thus not subject to GST.
The assignment of leasehold rights under the GST regime is deemed a transfer of immovable property, exempt from GST, contradicting the previous classification as a supply of service.
The assignment and sale of leasehold rights are classified as transfer of immovable property, not taxable as supply of services under GST.
Transfer of leasehold rights constitutes a sale of immovable property and is not considered a supply of services under the GST Act.
Transfer of leasehold rights constitutes transfer of immovable property and is not subject to GST, as clarified under the State Goods and Service Tax Act, 2017.
The lease of a factory as a whole, including both movable and immovable properties, is not subject to sales tax under Section 3A of the TNGST Act.
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