Home » Alerts » Bombay HC (Nagpur Bench): GST SCN on Assignment of MIDC Leasehold Rights Quashed

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In a significant ruling, the Bombay High Court (Nagpur Bench) has quashed a GST show cause notice issued on the assignment of long-term MIDC leasehold rights, holding that such transfer amounts to transfer of benefits arising out of immovable property and not a taxable supply of service under GST.

The Court further clarified that the transaction was neither a sub-lease nor carried out in the course or furtherance of business, thereby failing the basic requirements of “supply” under the CGST Act. In doing so, it followed the Gujarat High Court’s view and held the same to be binding on authorities in Maharashtra.

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