Case Law Details
Newlook Constructions Private Limited Vs State of Maharashtra & Ors. (Bombay High Court)
In Newlook Constructions Pvt. Ltd. vs State of Maharashtra & Ors., the Bombay High Court admitted a writ petition challenging the levy of GST on development rights under the reverse charge mechanism (RCM). The Court observed that the issue was identical to a previously admitted matter (Nirmal Lifestyle Developers Pvt. Ltd.), where interim relief had already been granted. Accepting this parity, the Court extended similar interim protection to the petitioner pending final adjudication. Notably, it directed the designated officer to recall the attachment of the petitioner’s bank account within two weeks, thereby preventing coercive recovery action. The case has been tagged with the earlier petition for joint hearing. The order reflects a prima facie acknowledgment of the legal challenge to GST on development rights and ensures that taxpayers are not subjected to enforcement actions while the constitutional and legal validity of such levy remains under judicial consideration.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. We have heard learned Counsel for the petitioner.
2. At the outset, learned Counsel for the petitioner has stated that the issue as involved in this petition is similar to the issue involved in Writ Petition (l) No.11011 of 2025 (Nirmal Lifestyle Developers Pvt. Ltd. Vs. The Union of India & Ors.) on which the co-ordinate Bench of this Court passed an order on 9 April 2025 admitting the petition. The issue is in regard to the GST being levied on the development rights. The co-ordinate Bench of this Court in Nirmal Lifestyle Developers Pvt. Ltd. (supra) has recorded reasons while admitting the petition and has granted interim relief.
3. Learned Counsel for the respondents would not dispute that as the issue in this petition is similar to the issue involved in Nirmal Lifestyle Developers Pvt. Ltd. (supra), similar orders can be passed. Accordingly, we pass the following order:-
ORDER
(i) Rule. Respondents waive service.
(ii) To be listed alongwith Writ Petition (L) No.11011 of 2025 (supra)
(iii) Pending the hearing and final disposal of this petition, there shall be similar interim reliefs as granted in Writ Petition (L) No.11011 of 2025 (Nirmal Lifestyle Developers Pvt. Ltd. Vs. The Union of India & Ors.)
(iv) As a consequence of the said order, we direct the Designated Officer to recall the attachment of the petitioner Company’s account, necessary steps in that regard be taken within two weeks from today.
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