M/S Tanglin Developments LTD. vs. State Of Karnataka
Facts
The petitioner, M/s Tanglin Developments Ltd., is challenging a demand notice dated August 16, 2019, issued by the Joint Director, Town Planning (South), Bruhat Bangalore Mahanagara Palike (BBMP). The demand notice includes a sum of Rs. 96,92,212/- and GST of Rs. 17,44,598/- at 18% on ground rent and scrutiny fees of Rs. 4,11,185/- for the issuance of an occupancy certificate. The petitioner is seeking to quash this demand notice, specifically the GST component and the underlying ground rent and scrutiny fees. The State of Karnataka and the BBMP are the respondents.
Held
The High Court of Karnataka, in its order dated August 9, 2021, disposed of the writ petition. The Court noted that the issues raised in this petition were identical to those considered in W.P. No. 4601/2020 and connected cases, which were decided by an order dated August 4, 2021. Consequently, this writ petition was also disposed of by following the order passed in the aforementioned connected cases. The specific findings, reasoning, and ratio decidendi from the August 4, 2021 order are not detailed in this judgment, but it is implied that the outcome for this petition is consistent with that prior decision. No specific operative directions are mentioned for this particular order, other than the disposal of the petition.
Key Issues
1. Whether the demand for Goods and Services Tax (GST) on ground rent and scrutiny fees for the issuance of an occupancy certificate is legally sustainable, considering the nature of these charges and the relevant GST provisions. Petitioner's contention: The petitioner argues that the demand for GST on ground rent and scrutiny fees is unsustainable. They likely contend that these charges do not constitute a taxable supply of goods or services under the GST regime, or that the demand is otherwise erroneous. The petitioner seeks to quash the demand notice, specifically the GST amount and the fees it is levied upon. Respondents' contention: The respondents, the State of Karnataka and the BBMP, have not recorded arguments in the provided judgment. However, their issuance of the demand notice implies they believe the charges are taxable and legally recoverable under the GST Act.
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.38931/2019 (LB-BMP)
BETWEEN
M/S TANGLIN DEVELOPMENTS LTD., A REGISTERED COMPANY, HAVING ITS REGISTERED OFFICE AT COFFEE DAY SQUARE, NO. 23/2, VITTAL MALYA ROAD, BENGALURU – 560 001. REPRESENTED BY ITS MANAGING DIRECTOR, SRI. SHANKAR V., ... 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 MAHANAGARA PALIKE NR SQUARE, BENGALURU – 560 002. REPRESENTED BY ITS COMMISSIONER.
THE JOINT DIRECTOR TOWN PLANNING (SOUTH),
2 BRUHAT BANGALORE MAHANAGARA PALIKE, N.R. SQUARE, BENGALURU – 560 002. ... RESPONDENTS (BY SRI NITHYANANDA K.R., HCGP 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 DEMAND NOTICE DTD16.8.2019 AT ANNEXURE-D ISSUE
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