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HIGH COURT OF GUJARAT
BHARGAV D. KARIA, D.N. RAY
Alfa Tools Private Limited – Appellant
Versus
Union of India – Respondent
JUDGMENT :
D.N.RAY, J.
1. Heard learned advocate Mr.Monaal J. Davawala for the Petitioner and learned advocate Mr. Deepak N. Khanchandani for the Respondent No.2.
2. Rule returnable forthwith. Learned advocate Mr.Deepak N. Khanchandani waives service of notice of rule on behalf of the Respondent No. 2. With the consent of learned advocates for the respective parties, the matter is taken up for hearing, as the issue involved is very short.
3. The petition has been filed under Article 226 of the Constitution of India with the following prayers :-
a) quash and set aside the impugned SCN dated 11.07.2024 issued by the Respondent No. 2 and declare both to be ex-facie illegal and without jurisdiction; and/or at Annex-A.
b) hold and declare that the Respondents are not entitled to charge Goods and Service Tax on the transaction entered into by the petitioner of relinquishment/assignment of the long-term leasehold rights under the provisions of the Goods and Service Tax, 2017; and/or c) pending the hearing, admission and final hearing of the petition, be pleased to stay the inquiry and/or further proceedings and all other consequential action being or likely to be undertaken by the Respondents p
The assignment of leasehold rights does not constitute a supply under GST, and any notice issued beyond the limitation period is illegal.
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.
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