Rohan Corporation India Pvt Ltd Vs Union Of India (Karnataka High Court)
The Karnataka High Court has ruled in favor of Rohan Corporation India Pvt Ltd., directing the Union of India and other respondents to refund a GST amount of ₹14,32,64,614 along with applicable interest. The court quashed an order by the third respondent, which had rejected Rohan Corporation’s GST refund claim related to the purchase of a partly constructed mall under liquidation.
The petitioner, Rohan Corporation, engaged in real estate development, had purchased the Lotus Shopping Mall in Mangalore through an e-auction conducted by the fourth respondent, the liquidator appointed under the Insolvency and Bankruptcy Code, 2016. The liquidator had insisted on the payment of GST on the transaction, which Rohan Corporation paid under protest, reserving the right to claim a refund.
The refund claim was subsequently rejected by the third respondent, primarily on the grounds that the transaction fell under Entry 5(b) of Schedule II of the Central Goods and Services Tax (CGST) / Karnataka Goods and Services Tax (KGST) Act, 2017, which classifies “construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly except where the entire consideration has been received after issuance of completion certificate…” 1 as a supply of service.
