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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D.KARIA, PRANAV TRIVEDI
Bansi Industries – Appellant
Versus
State Tax Officer – Respondent
JUDGMENT :
PRANAV TRIVEDI, J.
1. Heard learned advocate Mr. Hardik Vora for the petitioner and learned Assistant Government Pleader Ms. Shrunjal Shah for the respondent.
2. Having regard to the controversy arising in the petition which is in narrow compass, with the consent of the learned advocates for the respective parties, the matter is taken up for hearing.
3. Present petition preferred under Articles 226 and 227 of the Constitution of India assails the correctness and validity of Order-in-Original dated 31.12.2024 rendered under Section 7 4 (1) of the Gujarat/State Goods & Service Tax Act, 2017 (hereinafter referred to as ‘the Act’ for short). The impugned order passed in FORM GST DRC-07 inter alia considers the assignment of lease hold rights by the petitioner in favour of M/s. Bansi Industries as supply of service under Section 7 (1)(a) of the Act and, therefore, classified under Heading 9972 of classification scheme for services under the Act.
4. 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 agenc
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 transfer of immovable property and is not subject to GST, as clarified under the State Goods and Service Tax Act, 2017.
Transfer of leasehold rights constitutes a sale of immovable property and is not considered a supply of services under the GST Act.
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 does not constitute a supply under GST, and any notice issued beyond the limitation period is illegal.
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