Leasehold-rights assignment as a transfer arising from immovable property falls outside GST, defeating restoration of tax penalties.
Case-Laws
GST
Assignment of GIDC leasehold rights is treated as a transfer of benefits arising from immovable property and therefore falls outside the GST levy under the binding High Court ruling. On that basis, restoration or enhancement of penalties for alleged non-payment of GST did not arise, while the unchallenged confirmation of tax, interest and penalty under Section 73 remained undisturbed. Delayed invoicing and tax payment did not, by themselves, establish suppression with intent to evade tax. A bona fide and reasonable belief that the assignment was non-taxable, later supported by High Court rulings, independently precluded invocation of Section 74 and consequential penalties. The Department's appeal for restoration of penalties was dismissed.
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