Page 141 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : HAZARI BAGH BUILDERS PVT. LTD. 227
Realmart Pvt. Ltd., 104, LIC Colony, Vaishali Nagar, Ajmer, Raja-
sthan 305001 (the ‘Selected Bidder’) was the successful bidder and
was issued the Letter of Acceptance (the ‘LoA’) vide Letter No.
RLDA/2018/Residential/RFP/Hazari Bagh, Ajmer/371, dated
26-9-2018 by RLDA.
(3) The selected Bidder has, in accordance with the LoA, promoted and
incorporated the applicant i.e. M/s. Hazari Bagh Builders Private
Limited, Ajmer having GST No. 08AAECH7175C12L as a company
under the provisions of the Companies Act, 2013.
(4) Whereas, as per LoA, the amount of lease premium for both the
plots is Rs. 15,98,18,170/- (Plot A) and Rs. 31,90,74,800/- (Plot-B).
That, apart from the lease premium, the applicant will also have to
deposit ‘Annual lease rent’ which is Rs. 2,00,000/- for both the plots,
to be revised upwards by 15% every three years.
(5) Whereas, as per LoA, the applicant has to deposit 1st installment of
lease premium along with GST @ 18% (or as applicable) under re-
verse charge, within 60 days from the date of issue of LoA (i.e. 26-9-
2018).
(6) The Applicant in accordance with the LoA, deposited
Rs. 15,86,57,105/- as first installment of the lease premium to RLDA
by various RTGS on different dates from 16-2-2019 to 22-2-2019. It
was mentioned in the financial bid Form-12, that, for both plot A
and B; 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). The bid security amount for both
the plots was Rs. 33,00,000/- for Plot A & Rs. 52,00,000/- for Plot B.
(7) Whereas, as per LoA, the lease agreement can be terminated if at-
tached conditions are not obliged by the applicant viz. non-payment
of lease premium in prescribed duration as provided under
Form-12.
(8) We observe that, the applicant deposited Rs. 15,86,57,105/- as a first
installment of the lease premium in the month of February, 2019.
The applicant’s contention that it is not a lease premium but only a
security amount is not tenable on the ground that security of con-
tract was ensured when Letter of Acceptance (LoA) was issued on
26-9-2018 by RLDA to the highest bidder i.e. the Applicant. In post
LoA, bid conditions mandated that the highest bidder will form a
SPV and will deposit first installment. Further, the applicant himself
in his submissions stated that as against bid security of both the
plots, they deposited Rs. 33,00,000/- for Plot A and of
Rs. 52,00,000/- for Plot B. Therefore, the contention that the money
deposited is not a lease premium but a security amount is not ra-
tional and tenable. The first installment of the lease premium was
made to the RLDA after LoA. Whereas the amount so paid to secure
and confirm the execution of the contract was bid security amount
(Rs. 33,00,000/- for Plot A & of Rs. 52,00,000/- for Plot B). Therefore,
amount of Rs. 15,86,57,105/- is installment of lease premium.

GST LAW TIMES  13th August 2020  141