Case Law Details
R.A.R Retail and Infra LLP Vs State Tax Officer (Madras High Court)
The Madras High Court disposed of a writ petition challenging orders dated 04.09.2025 and 19.01.2026 passed under Sections 73 and 161 of the respective GST enactments concerning the tax period 2021-22. The petition was taken up at the admission stage itself with the consent of both parties.
The impugned order under Section 161 had been passed in response to an application filed by the petitioner on 30.10.2025, while the original assessment order under Section 73 had been issued pursuant to a show cause notice dated 06.06.2024, which the petitioner had replied to on 31.07.2025. Through the assessment order, the respondent had confirmed a GST demand based on amounts reflected in Form 26AS, which records particulars of tax deducted at source and credits available in favour of the petitioner.
The petitioner’s case was that it had purchased a parcel of land from GRK Theaters Private Limited on 17.11.2021 and subsequently sold the same land to GRT Hotels and Resorts Private Limited on 09.02.2022. According to the petitioner, the transaction involved only the sale of immovable property.
Upon examining the impugned assessment order, the Court noted that the demand had been confirmed on the ground that the petitioner had failed to produce the relevant sale deeds in support of its response to the show cause notice. The Court observed that transactions involving the sale of immovable property are outside the purview of the respective GST enactments.
The Court further noted that the copy of the sale deed and the corresponding Form 26AS produced by the petitioner prima facie indicated that there had indeed been a transaction involving the sale of immovable property. In view of these documents, the Court found prima facie support for the petitioner’s contention that the transaction in question was not liable to GST.
Under these circumstances, the High Court quashed the impugned orders dated 04.09.2025 and 19.01.2026 relating to the tax period 2021-22 and remitted the matter back to the respondent for fresh consideration on merits.
The Court directed that, before passing any fresh order, the respondent must provide due notice to the petitioner. With these observations, the writ petition was disposed of. No order as to costs was made, and the connected miscellaneous petitions were closed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Mr.V.Prashanth Kiran, the learned Government Advocate, takes notice on behalf of the Respondent.
2. This Writ Petition is being disposed of at the stage of admission itself with the consent of the learned counsel for the Petitioner and the learned Government Advocate for the Respondent.
3. In this Writ Petition, the Petitioner has challenged the impugned orders dated 04.09.2025 and 19.01.2026 passed under Section 73 and 161 respectively of the respective GST Enactments. The Section mentioned Order has been passed in response to an application filed on 30.10.2025. The first mentioned order has been passed in response to Show Cause Notice dated 06.06.2024 which was replied by the Petitioner on 31.07.2025. By the impugned Order, demand has been confirmed on the amount reflected in FORM 26AS which would reflect the particulars of the tax deducted at source and credit in favour of the Petitioner.
4. The case of the Petitioner is that the Petitioner had purchased the land from GRK Theaters Private Ltd on 17.11.2021 and sold the land to GRT Hotels and Resorts Private Limited on 09.02.2022.
5. Reading of the impugned Order indicates that the impugned Assessment Order dated 04.09.2024 indicates that the Petitioner had failed to produce the sale deeds in support of the response. As such, the sale of all immovable property are outside the purview of the respective GST Enactments.
6. The Copy of sale deed and the corresponding FORM 26AS filed by the Petitioner Prima facie indicates that indeed there was a sale transaction of immovable property and therefore it is outside the purview of the levy of tax under GST.
7. Under these circumstances, the impugned Order dated 04.09.2024, 19.01.2026 passed for the tax period 2021-22 are quashed and the cases are remitted back to the respondent to pass a fresh order on merits.
8. Needless to state, before passing any such order, the Respondent shall give due notice to the Petitioner.
9. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.
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