Bulusu Sitaram Murthy vs. Union Of INDIA
Facts
The petitioner, Bulusu Sitaram Murthy, challenged an order dated 16.02.2024 passed by the State Consumer Disputes Redressal Commission, Telangana, in CCIA No. 470 of 2023. The petitioner also sought a declaration that the deduction towards GST on the sale of a flat was illegal, as the occupancy certificate was issued on 29.04.2016, prior to the GST guidelines commencing on 01.07.2017 and the agreement of sale dated 03.07.2017. The petitioner sought a refund of Rs. 7,13,524/- plus interest, which was charged as GST. The sale deed was executed on 11.08.2017. The petitioner contended that the transaction of sale was not within the scope of supply under the Central Goods and Service Tax Act, 2017.
Held
The Court did not decide the substantive issues raised by the petitioner. Instead, the learned counsel for the petitioner sought and was granted permission to withdraw the Writ Petition with liberty to pursue remedies in accordance with law. Consequently, the Writ Petition was dismissed as withdrawn. The Court made no findings on the legality of the GST levy or the refund claim. The issues regarding the interpretation of Section 7 read with Schedule II of the CGST Act, 2017, and the applicability of GST to the sale of the flat, were expressly left undecided due to the withdrawal of the petition. The operative direction was to dismiss the petition as withdrawn.
Key Issues
1. Whether the levy of GST on the sale of a flat is ultra vires the Constitution, null and void, considering the occupancy certificate was issued prior to the commencement of GST guidelines and the agreement of sale was post-GST commencement? (Section 7 read with Schedule II of the Central Goods and Service Tax Act, 2017). Petitioner's arguments: The petitioner argued that the sale of the flat should not be subject to GST because the occupancy certificate was issued on 29.04.2016, which predates the GST regime (01.07.2017). The petitioner contended that the transaction of sale is not within the scope of supply as defined under Section 7 read with Schedule II, para (5)(b) of the CGST Act, 2017, and therefore, levying tax on such sales is unconstitutional. Revenue's arguments: The judgment does not record any specific arguments made by the respondents (Union of India and State of Telangana).
Sections Cited
Section 7, Schedule II of the Central Goods and Service Tax Act, 2017
AI-generated summary — verify with the full judgment below
[ 344s l IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Juri iction) TUE AY,THE TWENTY EIGHTH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE ABHINAND KUMAR SHAVILI AND THE HONOURABLE SMT JUSTICE TIRUMALA DEVI EADA WRIT PETITION NO:2274 OF 2025 Between: AND
Bulusu Sitaram Murthy, S/o late B Satyan arcyana aged 66 years, Occ_ Retired.Rt/o ftat No. sria, anct-2.,^bni"yJ'Strie-JSnlttinprrtr,i.t.,-i,/ry; Nagar, Miyapur, Hyderabad-500049. ,..PETITIONER a Union Of lndia, Ministry of Finance, Represented by its Secretary, North Block, New Delhi-1 10001 State of TelanSang, Sqp _by its principat Secretary Io Govt., Consumer Attarrs, l-oocl and Civil Supplied Department. Civil Supplies Bhavan, Erramanjil, Somajiguda, Hyderibad M/s N. V. Rattaiah and co (Partnership Firm), Registered address at Frat No. 1:.3^%,^ Djvya Shakti Complex. 7-1-5b, Ameerpdt, HyaeraOa-, -f?rangana_ 500016. Represented by its Managing partner, li/r. Hari'Hara prasaO "- - t ...RESPONDENTS Petition under Article 226 of the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to is
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