9911796707
TMI Blog2025 (3) TMI 887X X X X Extracts X X X X X X X X Extracts X X X X ..... ujarat Chamber of Commerce [2025 (1) TMI 516 - GUJARAT HIGH COURT], this Court had categorically held that 'assignment by sale and transfer of leasehold rights of the plot of land allotted by GIDC to the lessee in favour of third party-assignee for a consideration shall be assignment/sale/ transfer of benefits arising out of "immovable property" by the lessee-assignor in favour of third party-assignee who would become lessee of GIDC in place of original allottee-lessee. In such circumstances, provisions of section 7 (1) (a) of the GST Act providing for scope of supply read with clause 5 (b) of Schedule II and Clause 5 of Schedule III would not be applicable to such transaction of assignment of leasehold rights of land and building and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 pursuant to the Impugned SCN; and/or d) any other and further relief deemed just and proper be granted in the interest of justice; e) to provide cost of the petition. 4. The brief facts of the case are as follows: 4.1 The Petitioner is a private limited company, inter alia engaged in the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07.2024, requesting a period of 4 weeks to reply to the letter. 4.6 The Respondent No. 2 issued the Impugned Notice seeking further explanation with a further period of 30 days as to why such tax together with the interest and penalty should not be levied on the Petitioner. The Petitioner, with a prayer to quash and set aside the said notice, has filed this Petition. 5. Mr. Monaal J. Davawala, learned Counsel for the petitioner submitted that the issue of transfer of leasehold rights, not falling within the scope and ambit of "supply" with reference to Section 7 of the CGST Act stands concluded by the recent decision of this Court in the case of Gujarat Chamber of Commerce and Industry Vs. Union of India reported in 2025 SCC Online Guj 53 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransferred by the petitioner to a third party. The relevant portion of the Deed of Assignment which is germane to the present controversy is quoted hereinbelow:- "NOW THIS DEED WITNESSETH that in pursuance of the consideration of Rs.75,00,000/-(the receipt whereof the Assignor/Transferor hereby admits) that the Assignor/Transferor hereby assigns/conveys unto the Assignee/Purchaser all that piece or parcel of the said property with all rights, liberties, privileges, easements and appurtenances whatsoever to the said property or any part thereof TO HOLD the said property hereby assigned/conveyed unto the Assignee/Purchaser subject to the terms and conditions of the said lease and to the performance and observance of the covenants and stipul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tigation or dispute of any nature whatsoever is pending with regard to the said property. (f) The said sale or transfer is valid and subsisting lease of the sald premises herein before expressed to be hereby assigned express and is no wise void or voidable, and the covenants by the Assignor/ Transferor absolutely. (g) That it shall be lawful for the Assignee/Purchaser from time to time and at all times hereafter during the said term to peaceably and quietly hold possess and enjoy the said property hereby assigned/conveyed or expressed so to be with the appurtenances and receive the rent and profits thereof for his/her own use and benefit without any eviction interruption claim or demand whatsoever from or by the Assignor/Transferor or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mp duty, transfer fees and registration charges etc. shall be bear by the Assignee/Purchaser/Second party alone. The purchaser has verified all the assets purchased by them and he/they/she is/are fully satisfied with purchased properties in all respect. 8. Thus, from a perusal of the above, it will be seen that the aforesaid Deed of Assignment is nothing but a sale/transfer of the leasehold rights in favour of the assignee by the petitioner -original lessee /assignor for valuable consideration. In the case of Gujarat Chamber of Commerce (Supra), this Court had categorically held as under:- "83. In view of foregoing reasons, assignment by sale and transfer of leasehold rights of the plot of land allotted by GIDC to the lessee in favou ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
