M/S INDIA Build Homes PVT LTD vs. State Of Karnataka

Facts

The petitioner, M/s India Build Homes Pvt Ltd, is challenging a demand notice dated July 24, 2019, issued by the Joint Director, Town Planning (North), Bruhat Bengaluru Mahanagara Palike (BBMP). The demand includes a sum of Rs. 62,69,826/- and GST of Rs. 11,28,569/- at 18% on ground rent and scrutiny fee of Rs. 3,13,491/- for the issuance of an occupancy certificate. The petitioner contends that the demand, particularly the GST component on ground rent and scrutiny fee, is illegal. This writ petition raises issues identical to those decided in W.P.No.4601/2020 and connected cases.

Held

The High Court of Karnataka, in this writ petition, has chosen to dispose of the matter by following its previous order dated August 4, 2021, passed in W.P.No.4601/2020 and connected cases. While the specific findings and reasoning for the earlier order are not detailed in this excerpt, the implication is that the issues raised in the present petition are identical and have been decided in a manner consistent with that prior judgment. The operative direction would therefore align with the relief granted or denied in the earlier batch of cases. The judgment does not expressly leave any issue undecided.

Key Issues

1. Whether the demand of Goods and Services Tax (GST) at 18% on the ground rent and scrutiny fee of Rs. 3,13,491/- for the issuance of an occupancy certificate by the Bruhat Bengaluru Mahanagara Palike (BBMP) is legally sustainable? The petitioner argues that the demand for GST on ground rent and scrutiny fee is impermissible. The petitioner relies on the principle that such fees, levied by a local authority for statutory services, are not subject to GST. The petitioner's contention is that these are charges for regulatory approvals and not for any taxable supply of goods or services. The revenue or State's argument is not explicitly recorded in the provided judgment excerpt.