Page 137 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : HAZARI BAGH BUILDERS PVT. LTD. 223
transaction is exempt from the levy of GST. In view of the aforesaid
facts, legal provisions we are of the opinion on the queries that the
amount paid earlier and payable in pursuance of long term lease be-
tween the Applicant Company and RLDA are not liable to GST.
B. Questions on which the Advance Ruling is sought :
(i) Whether the Lease Agreement between the Applicant Company i.e.
the Lessee and RLDA for a period of 99 years is exempt from levy of
GST in view of the Notification No. 4/2019-Central Tax (Rate), dat-
ed 29-3-2019 or Notification No. 12/2017-Central Tax (Rate), dated
28-6-2017?
(ii) Whether the amount of Rs. 15,86,57,105.00 which is transferred by
the Applicant Company as Security Deposit in pursuance to the
tender and lease agreement dated 8-11-2019 is exempt under GST in
view of the Notification No. 4/2019-Central Tax (Rate), dated 29-3-
2019 or Notification No. 12/2017-Central Tax (Rate), dated 28-6-
2017?
(iii) Whether the amount of Rs. 15,86,57,105.00 deposited during Febru-
ary, 2019 is exempt under Notification No. 4/2019-Central Tax
(Rate), dated 29-3-2019 or Notification No. 12/2017-Central Tax
(Rate), dated 28-6-2017?
C. Personal Hearing
In the matter personal hearing through video conference was granted to
the applicant on 20-5-2020. Shri Pankaj Ghiya, Advocate (Authorized Representa-
tive) of applicant appeared for PH. During the PH, he reiterated the submissions
already made in the application. He also submitted additional submission
through email on the same day and on 5-6-2020. He further requested that the
case may be decided at the earliest.
D. Comments of the jurisdictional officer
Comments received from the Assistant Commissioner, Central Goods &
Services Tax Division, Ajmer vide letter dated 12-5-2020 are reproduced as
under :-
(1) Whether the lease agreement between the applicant Company i.e.
the lessee and RLDA for a period of ninety-nine years is exempt
from levy of GST in view of Notification No. 4/2019-Central Tax
(Rate), dated 29-3-2019 or Notification No. 12/2017-Central Tax
(Rate), dated 28-6-2017?
Comments : The applicant company i.e. M/s. Hazari Bagh Builders
Pvt. Ltd., Ajmer and RLDA (Rail Land Development Authority)
have entered into a lease agreement as on 8-11-2019 for ninety-nine
years for a land measuring 7.337 hectare for residential develop-
ment. The applicant company has paid an amount of
Rs. 15,86,57,105/- (First Installment of lease premium during Febru-
ary, 2019 to the RLDA). In a financial bid submitted by the applicant
company in FORM-12 for both plots A and B, it was mentioned by
the bidder that the applicable taxes/duty/GST, if any shall be pay-

GST LAW TIMES  13th August 2020  137