Introduction

Nordin Hassan J:

[1] This is the appellant's appeal against the decision of the Royal Custom's Appeal Tribunal dated 12 July 2019 pursuant to s 148 of the Good and Services Tax Act 2014 ('GST Act 2014').

The Background Facts

[2] The relevant background facts in the present appeal are the following:

(i) The appellant is a Malaysian company in the business of leasing land and properties;

(ii) On 9 August 2016, an agreement was entered between the appellant with Port Klang Authority and Port Klang Free Zone Sdn Bhd to lease 3 parcels of land amounting about RM20.3 million. The parcels of land are known as P410, P411 and P412;

(iii) In February 2017, the appellant constructed a warehouse on parcel P411 to complement the demand for the logistic facilities services. The construction of the warehouse costs about RM167.56 million exclusive GST and was completed in April 2018;

(iv) Thereafter, on 27 October 2017, the appellant entered into a tenancy agreement to rent the 3 parcels of land to CWT Commodities (M) Sdn Bhd ('CWT'). The period of the tenancy was from 1 March 2018 until 29 February 2020;

(v) On 4 April 2018, the appellant submitted its application for GST registrati