M/S Machani Ramesh Heritage vs. State Of Karnataka
Facts
The petitioner, M/s Machani Ramesh Heritage Private Ltd., filed a writ petition challenging a demand notice dated 24.05.2019 issued by the Joint Director, Town Planning (South), Bruhat Bangalore Mahanagara Palike (BBMP). The demand notice included an amount of Rs. 71,18,658/- towards ground rent and Rs. 12,81,359/- as GST at 18% on the ground rent, specifically in respect of the issue of occupancy certificates. The petitioner sought to quash this demand notice, particularly the GST component. The present writ petition raises identical issues to those considered in W.P.No.4601/2020 and connected cases.
Held
The Court disposed of the present writ petition by following its order passed in W.P.No.4601/2020 and connected cases decided on 04.08.2021. The judgment does not provide the specific findings or reasoning for the decision in W.P.No.4601/2020 or the operative directions issued therein. Therefore, the precise holding on the sustainability of the GST demand on ground rent, the reasoning that led to it, and the ratio decidendi are not recorded in this specific judgment. The operative directions, if any, are also not detailed here, other than the fact that the petition was disposed of in line with a previous order.
Key Issues
1. Whether the demand for Goods and Services Tax (GST) at 18% on the ground rent, as stipulated in the demand notice dated 24.05.2019, is legally sustainable, particularly in the context of issuing occupancy certificates. This issue turns on the interpretation of relevant GST provisions and the nature of the ground rent. Petitioner's contention: The petitioner argues that the demand for GST on ground rent is unsustainable. While the judgment does not explicitly detail the petitioner's arguments beyond this, it implies a challenge to the applicability of GST on this specific charge. Respondents' contention: The respondents, represented by the State of Karnataka and the BBMP, issued the demand notice. Their contention, implied by the issuance of the notice and the demand for GST, is that the ground rent is a taxable supply attracting GST at the prescribed rate.
AI-generated summary — verify with the full judgment below
1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 09TH DAY OF AUGUST, 2021
BEFORE
THE HON'BLE MR. JUSTICE M. NAGAPRASANNA
WRIT PETITION No.23227/2019 (LB-BMP)
BETWEEN
M/S MACHANI RAMESH HERITAGE PRIVATE LTD., A REGISTERED COMPANY HAVING ITS REGISTERED OFFICE AT NO.4, BOMMASANDRA INDUSTRIAL AREA, ATTHIBELE HOBLI, ANEKAL TALUK, BENGALURU – 560 099 REPRESENTED BY ITS SENIOR VICE PRESIDENT SRI. KISHORE KUMAR S. ... PETITIONER
(BY SRI T.P.VIVEKANANDA, ADVOCATE (PHYSICAL HEARING))
AND
STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY, URBAN DEVELOPMENT DEPARTMENT, 4TH FLOOR, VIKAS SOUDHA DR. AMBEDKAR VEEDHI, BENGALURU – 560 001. 2. THE BRUHAT BANGALORE MAHANGARA PALIKE N.R. SQUARE, BENGALURU – 560 002 REPRESENTED BY ITS COMMISSIONER.
2
THE JOINT DIRECTOR TOWN PLANNING (SOUTH), BRUHAT BANGALORE MAHANAGARA PALIKE N.R. SQUARE, BENGALURU – 560 002. ... RESPONDENTS
(BY SMT.PRATHIMA HONNAPURA, AGA FOR R1 (PHYSICAL HEARING) SRI V.SREENIDHI, ADVOCATE FOR R2 & R3 (PHYSICAL HEARING))
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE
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