Page 147 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : HAZARI BAGH BUILDERS PVT. LTD. 233
- of industrial plots or plots for development of infrastructure
for financial business;
- entity having 20 per cent, or more ownership of Central Gov-
ernment, State Government, Union territory;
- to developers in any industrial or financial business area
We observe that, elements regarding long term lease (present lease
is 99 years) and entity having 20% or more of ownership of Central
Government are satisfied (RLDA being the statutory body of Gov-
ernment of India).
But, we find that, two other conditions namely, industrial plots or
plots for development of infrastructure for financial business and
that to award such lease to developers in any financial business area
needs examination. We find that the RLDA is not awarding indus-
trial plots to applicant but a portion of land over which some resi-
dential infrastructures are meant to be built. An industrial plot is
the one in which developer is granted permission by competent au-
thority be it Central Government/State Government in reference to
some scheme of development. These plots are for a specific purpose
and if plot-holders in future tries to engage in some other work or
lease conditions of agreement are breached, then the developer has
every right to eject that plot-holder. In the present case, RLDA is
just providing a parcel of land which is in its ownership therefore;
the lease of the same cannot be categorized as meeting condition of
industrial plot and for the purpose of financial business. RLDA has
leased ordinary plots for residential purpose consequently the con-
ditions of the said notification are not satisfied. Therefore, the said
notification is not applicable in the instant case.
F. In view of the foregoing, we rule as follows :-
RULING
(i) The Lease Agreement between the Applicant Company i.e. the Les-
see and RLDA for a period of 99 years is not exempted 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) The amount of Rs. 15,86,57,105/- which is transferred by the Appli-
cant/SPV in pursuance to the tender and lease agreement dated 8-
11-2019 is not exempted 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) The amount of Rs. 15,86,57,105/- deposited during February, 2019 is
not exempted from GST vide Notification No. 4/2019-Central Tax
(Rate), dated 29-3-2019 or Notification No. 12/2017-Central Tax
(Rate), dated 28-6-2017.

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GST LAW TIMES  13th August 2020  147