Modern Asset vs. Bruhat Bengaluru Mahanagara Palike

Held

The Court disposed of the writ petition by following its previous order dated August 4, 2021, passed in W.P. No. 4601/2020 and connected cases, as the issues were identical. The Court did not independently adjudicate the merits of the demand for ground rent and GST in this specific judgment. However, in response to a submission by the petitioner's counsel, the Court granted liberty to the petitioner to submit a representation to the BBMP seeking reassessment or adjustment of any refundable amount for future tax. The BBMP was directed to consider such a representation if it was legally permissible. The Court clarified that this observation was made in the peculiar facts of the case and in answer to the petitioner's submission.

Facts

The petitioner, Modern Asset, a partnership firm, filed a writ petition challenging a demand letter dated March 18, 2021, issued by the Joint Director of Town Planning (North), Bruhat Bengaluru Mahanagara Palike (BBMP). The demand pertained to the levy of ground rent and the consequent Goods and Services Tax (GST) over this ground rent. The petitioner sought to quash this demand. The Court noted that the issues raised in this petition were identical to those in W.P. No. 4601/2020 and connected cases, which had been disposed of by an order dated August 4, 2021. Consequently, this writ petition was also disposed of following the earlier order.

Key Issues

1. Whether the demand letter issued by the Joint Director of Town Planning (North), BBMP, dated March 18, 2021, to the extent it levies ground rent and consequent GST over the ground rent, is legally sustainable. Petitioner's Contention: The petitioner argued that the demand for ground rent and the subsequent levy of GST on it were unsustainable. The petitioner sought reassessment or adjustment of the amount that the BBMP was liable to refund, to be utilized for future tax payments. Respondents' Contention: The respondents, BBMP, did not present any specific arguments in the judgment regarding the sustainability of the demand or the levy of GST. The judgment states that the petition was disposed of by following a previous order in identical matters.