M/S Shrinivasa Realcon Private Ltd., Thr. Director, Vilas Patne, Nagpur v. Dy. Commissioner Anti - Evasinon Branch, Cgst and Central Excise Nagpur-I Commissionerate and Ors.

Bombay HC11 Dec 2024WP/7135/2024

Case brief

AI extract

What is this about?

A developer challenged GST demand notices treating its land development agreement as a taxable supply of transfer of development rights under clause (5-B) of the June 2017 notification. The court observed prima facie the agreement involved no TDR and issued notice, staying coercive action till returnable date.

What did the court decide?

Notice issued for final disposal; no coercive action to be taken against petitioner till returnable date.

M/S Shrinivasa Realcon Private Ltd., Thr. Director… — GST and Indirect Tax | Bombay HC (2024)

¶1

wp7135.24.odt 1/2

¶2

IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH, NAGPUR .

¶3

WRIT PETITION No.7135 OF 2024

¶4

(M/s. Shrinivasa Realcon Pvt. Ltd., through its Director Vs. Deputy Commissioner, AntiEvasion Branch, CGST & Central Excise, Nagpur and others)

¶5

Office Notes, Office Memorandum of Coram,__________________________________________________________________________ appearances, Court's orders of direction, Court's or Judge's orders. And Registrar's Orders.

¶6

Mr. A.A. Naik, Senior Advocate along with Mr. A.J. Bhoot, Advocate for petitioner.

¶7

Coram : Avinash G. Gharote and Abhay J. Mantri, JJ. Date : 11th December , 2024.

¶8

Heard Mr. A.A. Naik, Senior Advocate advocate for the petitioner.

¶9

The petition questions the notice dated 24.7.2024 (Page 120), by which the petitioner has been asked to pay the amount of tax as ascertained upon the transaction as contemplated by the agreement of sale dated 7.1.2022 under the terms of which the petitioner has been appointed as a developer by the owner, to develope the land of Plot No.2 admeasuring 8000 sq. ft., Mouza Lendra, into a multi-storied complex for the monetary consideration of Rs.7/- crores and two apartments as indicated in clause (2) (Page 31). It also challenges the second show cause notice dated 14.8.2024 (Page 123) by which GST has been claimed upon the aforesaid transaction in terms of clause (5-B) of the Notification dated 28^th June, 2017 (Page 131) as it stands amended by the subsequent Notification dated 29^th March, 2019 (Page 135).

¶10

wp7135.24.odt 2/2

¶11

It is contended, that the transaction as is witnessed by the Agreement of Development dated 7.1.2022 does not fall within the scope and ambit of clause (5-B) so as to attract G.S.T. as all that the clause indicates is a service supplied by any person by way of transfer of development rights or FSI for construction of a project by a Promoter. Prima face, on perusal of the agreement dated 7.1.2022 would indicate that it has nothing to do with supply of any TDR, which is defined under Regulation 11.2 of the Unified Development Control and Promotion Regulations for the State. It is material to note that the GST Act does not define what is meant by Transfer of Development Right (TDR).

¶12

Issue notice for final disposal to the respondents, returnable on 7.1.2025.

¶13

No coercive action shall be taken against the petitioner till the returnable date.

¶14

(Abhay J. Mantri, J.) (Avinash G. Gharote, J.)

¶15

Wadode

¶16

Signed by: Mr. Devendra Wadode Designation: PA To Honourable Judge Date: 12/12/2024 14:57:35

M/S Shrinivasa Realcon Private Ltd., Thr. Director, Vilas Patne, Nagpur v. Dy. Commissioner Anti - Evasinon Branch, Cgst and Central Excise Nagpur-I Commissionerate and Ors.

Case brief

What is this about?

What did the court decide?

M/S Shrinivasa Realcon Private Ltd., Thr. Director, Vilas Patne, Nagpur v. Dy. Commissioner Anti - Evasinon Branch, Cgst and Central Excise Nagpur-I Commissionerate and Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

All orders in this case

Similar cases

Mahabeej Karmachari Sanghatana Thr. Its Treasurer/ Karyadhyaksha, Akola Vs State of Maha. Thr. Secy./Addl. Secy. of the Dept.of Agri., Animal Hus., Dairy Devpt. and Fisheries

Ganesh Vithal Gondhalekar Vs Union of India, through Secretary, Ministry of Railway, New Delhi and Others

Varahi Associates, Thr. Partner, Subhash Singh, Kharsia, Raigarh and Another vs Western Coalfields Ltd., Thr. the Chairman-Cum-Managing Director, Nagpur and Others

Rupesh Mohit Shah Vs State of Mah. Thr. Pso, Ps, Lakadganj, Nagpur City, Nagpur and Another.

Sau Shobha W/O Vandeo Athor and Another Vs State of Mah., Thr. Pso Ps Nandgaon-Peth Dist Amravati and Another

Sau. Divya W/O Naresh Rawlani Vs State of Maharashtra, Thr. Principal Secretary, Urban Development Dept., Mumbai and Others