High Court remands back matter relating to levy of GST on transfer/assignment of Leasehold rights directing Department to consider Gujarat HC Judgment

Last updated: 30 January 2025

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The Bombay High Court has set aside a GST demand and order concerning the assignment of leasehold rights, remanding the matter back for fresh consideration. The court found that the tax authorities failed to consider the assessee's reply before issuing the order. Furthermore, the High Court directed the authorities to consider a Gujarat High Court judgment which held that the transfer or assignment of leasehold rights in industrial land is not subject to GST.

Court :
Bombay High Court

Brief :
The Hon'ble Bombay High Court in the case of Panacea Biotec Limited Vs Union of India & Ors [Writ Petition No.13587 of 2024 dated January 21, 2025] set aside the SCN issued and order passed relating to levy of GST on the transaction relating to assignment of leasehold rights by a lessee to third party for on account of non-consideration of reply at the time of passing of order. The Hon'ble High Court also directed the Department to consider the judgment passed by the Hon'ble Gujarat High Court in the case of Gujarat Chamber of Commerce and Industry & Ors. Vs UOI & Ors. [R/Special Civil Application No. 11345 of 2023 dated January 03, 2025] wherein it was held that transfer/assignment of Leasehold rights in industrial-land not taxable.

Citation :
Writ Petition No.13587 of 2024 dated January 21, 2025

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

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3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Attached File : 671907_5827_panacea_biotec_limited.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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