IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 617 of 2024 FOR APPROVAL AND SIGNATURE:

HONOURABLE MR. JUSTICE A.S. SUPEHIA and HONOURABLE MR. JUSTICE PRANAV TRIVEDI ==================================================

Approved for Reporting Yes No ✔

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LUNA CHEMICAL INDUSTRIES PRIVATE LTD.

Versus THE UNION OF INDIA & ORS.

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Appearance:

MR NISARG DESAI with YASH MODI for GANDHI LAW ASSOCIATES(12275) for the Petitioner(s) No. 1 MS TANUSHREE SHRIMAL ASSISTANT GOVERNMENT PLEADER for the Respondent(s) No. 2 MR ANKIT SHAH(6371) for the Respondent(s) No. 1 MR UTKARSH R SHARMA(6157) for the Respondent(s) No. 3,4 ==================================================

CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA and HONOURABLE MR. JUSTICE PRANAV TRIVEDI Date : 13/03/2026 ORAL JUDGMENT (PER : HONOURABLE MR. JUSTICE PRANAV TRIVEDI)

1. Heard learned advocate Mr. Nisarg Desai for the petitioner, learned advocate Mr. Ankit Shah for respondent no. 1, Ms. Tanushree Shrimal, learned Assistant Government Pleader for respondent no. 2 and learned Senior Standing Counsel Mr. Utkarsh Sharma for the respondent nos. 3 and 4.

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. Rule returnable forthwith. Learned advocates waives service of notice of rule on behalf of the respective parties.

4. The present petition preferred under Articles 226 and 227 of the Constitution of India assails the correctness and validity of show cause notice dated 29.12.2023 rendered under Section 74 of the State Goods & Service Tax Act, 2017 (hereinafter referred to as ‘the Act’ for short), inter alia considering the assignment of lease hold rights by the petitioner in favour of M/s. Jal Aqua International as supply of service under Section 7(1)(a)of the Act and Order-in-Original dated 15.02.2024 passed by the respondent no. 4 under Section 74 (1) of the Act.

5. The 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 agency of Government of Gujarat for the purpose of development of industrial areas /estates. GIDC gives lands to industries on lease, generally for a period of 99 years. GIDC issues an allotment letter to the industry desiring to take plots developed by the GIDC. Allotment letter would set various terms and conditions on which the allotment is being made, including the method and manner in which premium is required to be paid.

5.1 The petitioner was allotted industrial plot No. 620 situated at Panoli, GIDC, Ankleshwar by way of assignment deed dated 28.03.2018 executed between the petitioner and Debts Recovery Tribunal-I, Mumbai. Thereafter, the petitioner agreed to transfer his interest to M/s. Jal Aqua International by way of an assignment deed dated 24.10.2018 under certain terms and conditions as stipulated under deed of assignment. Further on application preferred to transfer the lease hold rights, provisional transfer order dated 20.09.2018 was issued on fulfillment of conditions mentioned in the provisional transfer order. The provisional transfer order further stated that permission of transfer can be granted as provided in clause of license agreement of sale executed with the petitioner.

5.2. It is the case of the petitioner that summons under Section 70 of the Act was served by the respondent no. 3 (hereinafter referred to as the “respondent”) on 16.04.2021 demanding various documents and information with regard to transfer of leasehold rights in favour of M/s. Jal Aqua International. Subsequently, another summons came to be issued on 07.12.2022 under the provisions of Section 70 of the Act. The petitioner by way of reply dated 29.11.20