2026-VIL-188-GSTAT-SRT
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SGST Tribunal

GST - Assignment of leasehold rights of industrial plot allotted by GIDC - Taxability as supply of service - The Respondent assigned the leasehold rights in a plot allotted by the industrial development corporation to a third party. Show Cause Notice alleged that the transaction was supply of service classifiable as "Other Miscellaneous Services" taxable under Sr. No. 35 of Notification No. 11/2017-CT (Rate) - First Appellate Authority set aside the demand following the jurisdictional High Court - Whether GST is leviable on assignment of leasehold rights of a plot allotted by the industrial development corporation - HELD - The case is squarely covered by the judgment of the Gujarat High Court in Gujarat Chamber of Commerce and Industry, which held that such assignment for a consideration is a transfer of benefits arising out of immovable property. Section 7(1)(a) read with Clause 5(b) of Schedule II and Clause 5 of Schedule III is not applicable to such transaction, and it is not subject to levy of GST under Section 9. The Bombay High Court in Aerocom Cushions agreed with this view and held that the entry of "other miscellaneous services" at Sr. No. 35 covers petty services and cannot be extended to assignment of leasehold rights in immovable property - The Special Leave Petitions against both judgments were dismissed by the Supreme Court. The judgment of the jurisdictional High Court holds the field and binds the Tribunal, and the Department's intention to seek a review does not dilute its binding effect. The questions on the taxable event in the pre-GST regime and the invocation of Sections 74 and 122 do not survive - GST is not leviable on the transaction, the Department's appeal is dismissed and the Order-in-Appeal is upheld.
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