Meghaaarika Enterprises Private Limited & Anr. Vs State of Gujarat & Anr. (Gujarat High Court)
Refund claims permissible for interest paid under protest, on disputed GST for leasehold rights assignment: Gujarat HC
The Gujarat High Court set aside a deficiency memo issued in Form GST RFD-03 that had rejected a refund claim for interest paid under protest on GST demanded for assignment of GIDC leasehold rights. The petitioner had assigned leasehold rights in an industrial plot and, disputing GST leviability on such transfer, paid interest under protest through DRC-03 and sought refund under Section 54 read with Rule 90. The tax department rejected the claim at the threshold, citing absence of any GST Council notification or circular permitting such refund. The Court noted that assignment of leasehold rights amounts to transfer of immovable property and is not exigible to GST, and that a refund application cannot be mechanically rejected merely for want of a circular when statutory provisions permit refund. Accepting the Revenue’s concession, the Court quashed the deficiency memo, revived the refund application, and directed the authorities to decide it afresh within three weeks in accordance with law.
Facts:
Meghaariika Enterprises Private Limited (“the Petitioners”) which was originally allotted a plot of land on lease by Gujarat Industrial Development Corporation (“the GIDC”) and subsequently assigned / transferred the leasehold rights in the said GIDC plot to M/s. Tatva Chintan Pharma Chem Ltd. pursuant to assignment deed dated December 22, 2021.
