BKP Media Vision Private Limited Vs Union of India and 5 others (Allahabad High Court)
Allahabad High Court has ordered an interim stay on the recovery of Goods and Services Tax (GST) demanded from BKP Media Vision Private Limited concerning the transfer of leasehold rights in land. The court’s decision relies on a precedent set by the Gujarat High Court, which held that such transactions are not subject to GST.
BKP Media Vision Private Limited had been granted a 99-year lease by NOIDA. Following permission from NOIDA, the company transferred all its rights in the leased land to a purchaser. The petitioner paid the required stamp duty based on the sale consideration. However, the respondents initiated proceedings under Section 74 of the Goods and Services Tax Act, 2017, alleging suppression of facts by the petitioner for not paying GST on this transfer.
The petitioner’s counsel argued that the levy of GST on this transaction was contrary to established legal precedent.
Judicial Precedents:
The primary judicial precedent cited by the petitioner was the Gujarat High Court’s ruling in Gujarat Chamber of Commerce and Industries vs. Union of India and others (2025:GUJHC:1117-DB). In this case, the Gujarat High Court concluded that transactions involving the transfer of leasehold rights of the nature in question would not be covered under Section 7(1)(a) of the GST Act.
