2026-VIL-171-GSTAT-SRT
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SGST Tribunal

GST - Levy of tax on assignment of leasehold rights in plots allotted by Gujarat Industrial Development Corporation - Binding effect of jurisdictional High Court judgment - Department demanded GST under reverse charge mechanism from the Respondents, who were assignees of leasehold rights in plots of land allotted on lease by the industrial development corporation - Department appeal before Tribunal, stating that it had filed a Special Leave Petition against that judgment, which was dismissed, and that it was in the process of filing a review petition - Whether GST is leviable on assignment of leasehold rights in plots of land allotted by the corporation to a third party for consideration - HELD - The case is squarely covered by the judgment of the Gujarat High Court in Gujarat Chamber of Commerce and Industry, which held that assignment by sale and transfer of leasehold rights of the plot of land allotted by the corporation to the lessee in favour of a third-party assignee for a consideration is assignment, sale or transfer of benefits arising out of immovable property, so that Section 7(1)(a) read with clause 5(b) of Schedule II and clause 5 of Schedule III would not be applicable and the transaction is not subject to levy of GST under Section 9. The Bombay High Court agreed with this view, and the Supreme Court dismissed the Special Leave Petitions of the Department against both judgments. The judgment of the jurisdictional High Court holds the field and binds the Tribunal - The stated intention of the Department to seek a review does not dilute its binding effect, there being no order staying or recalling it. In view of this finding, the questions whether Sections 74 and 122(2)(b) were rightly invoked and whether the reverse charge mechanism is applicable do not survive for consideration - GST is not leviable on the transactions in question, the appeals filed by the Department are dismissed and the Orders-in-Appeal are upheld – The appeal is dismissed
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