M/S. Lifeline Multi Ventures PVT.LTD. vs. Chief Commissioner Of Central Goods And Service Tax
Held
The Court held that the issue in the present writ petition was covered by its previous judgment in M/s. Safari Retreats Pvt. Ltd. The Court directed that the parties would be governed by the decision in M/s. Safari Retreats Pvt. Ltd., subject to the final outcome of the Special Leave Petition (civil) Diary No(s).37367 of 2019 pending before the Supreme Court. The reasoning was based on the precedent set by the Court's own earlier ruling and the lack of a stay order from the apex court. The operative direction was to dispose of the writ petition subject to the result of the SLP.
Facts
The petitioners, a company, filed a writ petition challenging the applicability of Section 17(5)(d) of the CGST Act and OGST Act to the construction of immovable property intended for letting out for rent. The petitioners relied on a previous judgment of the same High Court in M/s. Safari Retreats Pvt. Ltd and others v. Chief Commissioner of Central Goods & Service Tax and others. The revenue did not dispute that the issue was covered by the cited judgment. The revenue informed the court that a Special Leave Petition (civil) Diary No(s).37367 of 2019 had been filed against the Safari Retreats judgment, but no stay order had been granted by the Supreme Court.
Key Issues
1. Whether Section 17(5)(d) of the CGST Act and OGST Act is applicable to the construction of immovable property intended for letting out for rent. The petitioner argued that this provision should not apply in such cases, relying on the High Court's prior decision in M/s. Safari Retreats Pvt. Ltd. The revenue did not contest this argument, acknowledging that the issue was covered by the aforementioned judgment. The revenue did, however, mention the pendency of a Special Leave Petition before the Supreme Court against the Safari Retreats decision, without a stay order.
Sections Cited
Section 17(5)(d)
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18.12.2019
Heard learned counsel for the petitioners and Shri T.K. Satapathy, learned Sr. Standing Counsel for the CT and GST-opposite parties.
By way of this writ petition, the petitioners- Company has prayed for a declaration that the provisions of Section 17(5)(d) of CGST Act and OGST Act are not applicable in respect of construction of immovable property intending for letting out for rent.
Learned counsel for the petitioner produces a copy of the judgment passed by this Court in M/s. Safari Retreats Pvt. Ltd and others v. Chief Commissioner of Central Goods & Service Tax and others [2019] 67 GSTR 16 (Orissa), and submits that the issue involved in this case is covered by the judgment of this Court.
Learned Sr. Standing Counsel for the CT and GST-opposite parties does not dispute the same and submitted that against the decision of this Court in M/s. Safari Retreats Pvt. Ltd (supra), Special Leave Petition (civil) Diary No(s).37367 of 2019 has been preferred and no stay order granted by the Hon’ble Apex Court.
Considering the submission made and keeping in view the prayer made and the judgment cited
The judgment continues below.
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