9911796707
TMI Blog2024 (3) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the filing of application by the applicant. The applicant cannot seek an advance ruling on a completed transaction as laid down in Section 95(a) of the CGST Act, 2017, and accordingly, this authority refrains from giving any ruling in this regard. - SMT. D. JAYAPRIYA, AND SMT. T INDIRA, MEMBER 1. Any appeal against this Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Rulings, Chennai under Sub-section (1) of Section 100 of Central Goods and Service Tax Act / Tamil Nadu Goods and Service Tax Act 2017 ( the Act in short) within 30 days from the date on which the ruling sought to be appealed against is communicated. 2. In terms of Section 103(1) of the Act, this Advance ruling pronounced by the Authority under Chapter XVII of the Act shall be binding only- (a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling; (b) on the concerned officer or the jurisdictional officer in respect of the applicant. 3. In terms of Section 103(2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Understanding dated September 14, 2021 with them. The MOU is executed to formalize the terms agreed between them for transfer of the balance period of leasehold rights in the property, subject to approvals being granted by SIPCOT. The applicant agrees to transfer the remainder of leasehold rights for a consideration of Rs. 1.24 crores, by way of submitting an application to SIPCOT for transfer of rights in favour of M/s.Kanta Flex. On receipt of approval letter, and on payment of consideration, a Modified Lease Deed to be executed, upon which the applicant would hand over the vacant possession of the Schedule property to M/s. Kanta Flex. 2.3 The authorities of the Centre and State were addressed to report if there are any pending proceedings against the applicant on the issues raised by the applicant in the ARA application and for comments on the issues raised. 3. The concerned CENTER authority under whose administrative jurisdiction the taxpayer falls, have vide their letter dated 13.02.2023, stated that, It is inferred that SIPCOT is the owner of the land which has been leased to the taxpayer for 99 years. The one who hold the leasehold rights may transfer t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for business or commerce is supply of services . In other words, benefits arising from land in the forms specified in paragraph 2 of Schedule II are not to be treated as transactions in immovable property but as supply of service for the purpose of GST. In the case of Builders Association of Navi Mumbai Vs. UOI, reported in 2018 (12) G.S.T.L. 232 (Bom.), the Hon ble High Court has held that an activity in any form effected for a consideration and made in the furtherance of business is a Supply . Further only those transactions or activities of Governments or Statutory authorities can be considered as neither supply of goods of services, which are specifically notified to be so. Accordingly, transaction would be taxable under GST law in the absence of specific Notification, and therefore exemption is not available to CIDCO merely by its status. Further, in the case of Greater Noida Industrial Developmental Authority Vs. Commissioner of Customs, C.Ex., reported in 2015 (40) S.T.R. 95 (All.), the Hon ble High Court has held that service tax would be applicable on transfer of leasehold rights. Therefore, the activity of assignment is in the nature of agreeing to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon ble Madras High Court has held that the lumpsum amount paid does not make a permanent lease any less an alienation than a sale. Further, in the case of Suyog Dye Chemie Pvt Ltd Vs. UOI, the Hon ble Gujarat High Court has held that what is being taxed in the hands of the petitioner is a sale of land which otherwise is an activity not falling within the supply of services in accordance with Schedule III of the Act. Accordingly, the applicant believes that the instant transaction is to be treated as Sale of land , which would not attract any GST at all. 6.4 As undertaken during the personal hearing, the authorized representative furnished the following documents before the authorities, viz., (i) Letter dated 30.03.2022 of SIPCOT according approval for transfer of leasehold rights. (ii) MOU dated 11.09.2021 executed by M/s. Ionbond Coatings Private Limited, with M/s. Kanta Flex (India) Private Limited. (iii) Facts of the case relating to transfer of leasehold rights. (iv) Ledger of M/s. Kanta Flex (India) Private Limited in the books of M/s. Ionbond Coatings Private Limited, depicting the details of payments received by the applicant. DISCUSSION A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 10,00,000/- to be paid within 7 days after execution of this MOU as First Instalment of Advance . On receipt of advance, the transferor shall commence the process of obtaining necessary approval from SIPCOT and shall make the payment of differential plot cost as determined by SIPCOT. The transferor shall put the transferee into possession of the property by handing over the entire asset, immediately after full payment and execution of the Modified Lease Deed. The Modified Lease Deed shall be executed within 45 days from the payment of differential plot cost by the transferor to SIPCOT. In lieu of the TANGEDCO deposit, the transferee to make an additional payment of Rs. 13,00,000/- to the transferor, upon which the transferor shall extend their assistance in effecting such name transfer with TANGEDCO authorities. It is agreed between the parties that only rights in the immovable property are expected to be transferred, and the transferor shall take back all movable property except electrical equipment, related wiring and cabling fixtures and fittings. As per the Annexure-C to MOU, the overall amount to be transferred is arrived as follows:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 30.03.2022, subject to the payment of differential land cost of Rs. 63,21,000/- along with processing fees of Rs. 17,700/-. The SIPCOT, upon receipt of the differential amount executed modified lease deed with Kanta Flex (India) Pvt. Ltd., for the balance period of 68 years. 8.5 On perusal of the Ledger of M/s. Kanta Flex (India) Private Limited in the books of M/s. Ionbond Coatings Private Limited, it was seen that credit entries relating to the receipt of consideration from M/s. Kanta Flex have been recorded as follows : Date Particulars Amount (INR) 15.09.2021 Payment 10,00,000 07.04.2022 Payment 1,00,00,000 16.04.2022 Payment 13,00,000 07.05.2022 Payment 18,00,000 07.05.2022 Payment 22,00,000 TOTAL 1,63,00,000 It could be ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
