2023-VIL-690-ALH
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SGST High Court Cases

GST – Demand of GST by non-revenue authority – validity of allegation of violation of condition of exemption notification in the absence of there being any condition specified in the exemption notification - Petitioner challenge letter issued by the Yamuna Expressway Industrial Development Authority (YEIDA) demanding 18% GST from petitioner towards services by way of granting of long term lease of thirty years or more for plots allotted for public healthcare purpose – YEIDA justified the demand of GST from the petitioner alleging violation of condition against Entry no. 41 of exemption Notification 12/2017-CT(R) – HELD - Notification No. 32/2017, dated 13th October, 2017 granted specific exemption to upfront amounts, by whatever name called, when paid with respect to service of grant of long term lease of 30 years or more of industrial plots, by the Development Corporations/ Undertakings etc. - YEIDA entertained the doubt with respect to availability of said exemption to allotment made for public healthcare purpose - YEIDA sought Advance Ruling from the Authority for Advance Ruling, expressing specific doubt as to whether GST was chargeable on premium and lease rent on plots allotted to hospitals against lease granted for more than 30 years - the Authority for Advance Ruling clearly ruled that GST is not applicable on upfront amount, if the conditions are satisfied as mentioned Sl. No. 41 of Notification No. 12/2017-CT (Rate) dated 28.06.2017 as amended by Notification No. 32/2017-CT (Rate) dated 13.10.2017 - In absence of any challenge raised to said AAR order by any party and it being a fact that the said order has attained finality, it is strange that the YEIDA, which is not the revenue authority, chose to issue the communication seeking 18% GST to the petitioner - the stand taken by the YEIDA is wholly unfounded in law – In the exemption Notification 12/2017-CT(R), against Entry no. 41, there never existed any specification or condition for grant of exemption – Further, while amending the said Notification, vide Notification No. 32/2017, dated 13.10.2017, no amendment was made to the original Notification No. 12/2017-CT(R) to introduce any condition for grant of that exemption. Therefore, the exemption made available to the petitioner by virtue of the Notification No. 12/2017-CT(R) issued under Section 11 of the CGST Act read with order of the Authority for Advance Ruling, is unconditional. Consequently, the letter issued on behalf of YEIDA is wholly unfounded in law and also in facts - The impugned communication is quashed - the writ petition is allowed
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