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
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.
Facts:
M/s Panacea Biotec Limited ("the Petitioner") has filed a writ petition for quashing of the Show Cause Notice dated July 16, 2024 ("the Impugned SCN") and Order dated August 19, 2024 ("the Impugned Order"). The issue involved is whether the GST Authorities can levy GST on a Deed of Assignment under which the land and the building constructed thereon is transferred by the Lessee. The Petitioner contended that r the transaction in question would fall within Item 5 of Schedule III of the Central Goods and Services Tax Act, 2017 ("the CGST Act") and not under Item 2 of Schedule II of the CGST Act.
Issue:
Whether the GST would be leviable on transaction relating to assignment of leasehold rights by a lessee to third party?
Held:
The Hon'ble Bombay High Court in the case of Writ Petition No.13587 of 2024 held as under:
OFFICIAL JUDGMENT COPY HAS BEEN ATTACHED