Kabir Instrument And Technology Vs Union of India & Ors. (Gujarat High Court)
Gujarat High Court has quashed a show cause notice issued to Kabir Instrument and Technology regarding the applicability of GST on the assignment of long-term leasehold rights. The petitioner challenged the notice under Article 226 of the Constitution, seeking a declaration that GST was not chargeable on such transactions. Alternatively, they requested that Input Tax Credit (ITC) be granted if GST was levied. They also sought a refund of ITC already reversed, along with applicable interest.
The court referred to its earlier judgment in Gujarat Chamber of Commerce and Industry v. Union of India, where it ruled that the transfer of leasehold rights is considered an assignment of immovable property and does not attract GST under Section 9 of the GST Act. Since the respondent authorities did not dispute the facts of the case, the High Court set aside the show cause notice without examining additional factual details. The ruling reinforces the legal position that the assignment of leasehold rights is not subject to GST, providing clarity on taxation in such transactions.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. Heard learned advocate Mr. Tarak Damani for the petitioner and learned advocate Mr. Ankit Shah for respondent 1.
