Time Technoplast Limited Vs Union of India & Ors. (Gujarat High Court)
Gujarat High Court has set aside a show cause notice issued by tax authorities demanding Goods and Services Tax (GST) on the transfer of leasehold rights for an industrial plot by Time Technoplast Limited to its subsidiary, TPL Plastech Ltd. The court’s decision, delivered on June 19, 2025, aligns with previous rulings that such transactions do not fall under the ambit of taxable supply under the GST Act.
The case, Time Technoplast Limited Vs Union of India & Ors., revolved around the assignment of a GIDC (Gujarat Industrial Development Corporation) industrial plot. Time Technoplast, engaged in manufacturing polymers and composite products, had been assigned Industrial Plot No. D-2-E-333 at Dahej II Industrial Estate by GIDC on July 4, 2011.
In March 2017, Time Technoplast sought to transfer this plot to its subsidiary, TPL Plastech Ltd., in which it holds a 75% shareholding. GIDC provisionally approved this transfer on May 30, 2017. Subsequently, on June 1, 2017, a Memorandum of Understanding (MOU) was executed between Time Technoplast and TPL Plastech, agreeing to the transfer of leasehold rights for a consideration of Rs. 3,71,00,000/-. Payments were made in two tranches, on June 29, 2017, and September 29, 2017. A Deed of Assignment was formally executed on July 11, 2017, and GIDC issued the final transfer order.
