Page 132 - GSTL_13th August 2020_Vol 39_Part 2

218 GST LAW TIMES [ Vol. 39
with development of financial infrastructure on 6.84 Ha (approx.) of
Railways land at Hazari Bagh, Ajmer for 99 years on 15-2-2018;
(2) that the Applicant Company M/s. H.S. Mehta Infra Pvt. Ltd. Ajmer
submitted the bids and their lead partnership for Plot A at Rs.
159818170.00 lease premium and for Plot B as Rs. 319074800.00 lease
premium. It was mentioned in the financial bid Form-12 of both plot
A and B that the applicable taxes/duty/GST, if any shall be payable
extra by the bidder in addition to the above quoted/offered rates
(lease premium and annual lease rent);
(3) that after the bids were submitted the Letter of Acceptance (LOA)
(page 16-17 of lease agreement) was issued on 26-9-2018 by RLDA
to the highest bidder i.e. the Applicant, of combined land parcels of
two plots A and B having quoted combined lease premium of both
plots as Rs. 478892970.00 with their Letter No. 371, dated 26-9-2018.
As per payment schedule of bid Form 12 it was requested by RLDA
to the Applicant to Form a new SPV as per conditions mentioned in
the bid and pay Rs. 158657105 towards the payment of first install-
ments of lease premium along with interest as applicable with ap-
plicable GST if any or as applicable on the date of deposition of the
said payments;
(4) that the applicant M/s. H.S. Mehta Infra Pvt. Ltd. Ajmer as lead
partner with consortium formed a new SPV as per bid conditions
named Hazari Bagh Builders Pvt. Ltd. Ajmer and received its GST
No. as 08AAECH7175C12L as mentioned at Page 52 of the lease
agreement. New SPV M/s. Hazari Bagh Builders Pvt. Ltd. Ajmer
deposited the amount of Rs. 158657105.00 by various RTGS as given
as detail on page No. 3 of lease agreement enclosed herewith be-
tween the period of February, 2019;
(5) that as per the terms of the Lease Agreement by way of Clause 26,
certain conditions have been enlisted where the lease agreement can
be terminated if the same are not fulfilled. Clause 26.3 clearly states
that any amount paid before the execution of the Lease Agreement,
is refundable in case of breach except the security bid submitted by
the Applicant without prejudice to any other rights or remedies.
This implies that the amount which is paid in the month of Febru-
ary, 2019 before the execution of lease agreement i.e. 8-11-2019 is to-
tally refundable and does not form part of the consideration and is
only a deposit made for confirmation of contract and is in nature of
Security. Therefore, it is not eligible to GST;
(6) that as per the facts the Applicant Company is registered in the
State of Rajasthan and having GSTIN in State of Rajasthan. The Ap-
plicant company has entered into a long term Lease Agreement of
99 years with RLDA for undertaking residential & commercial de-
velopment along with development of financial infrastructure as on
8-11-2019. The Applicant Company paid a sum of Rs. 158657105.00
in parts by way of RTGS on separate days in the month of February,
2019 as Security deposit which, in case of breach is refundable after

GST LAW TIMES  13th August 2020  132