The Maharashtra Authority of Advance Ruling (AAR) ruled that 18% GST payable by the applicant-Maharashtra Metro Rail Corp. on providing leasing services.
The AAR held that a person who claims exemption or concession has to establish that he is entitled to that exemption or concession. A provision providing for an exemption, concession or exception, as the case may be, has to be construed strictly with certain exceptions depending upon the settings on which the provision has been placed in the Statute and the object and purpose to be achieved. If exemption is available on complying with certain conditions, the conditions have to be complied with. The mandatory requirements of those conditions must be obeyed or fulfilled exactly, though at times, some latitude can be shown, if there is a failure to comply with some requirements which are directory in nature, the non-compliance of which would not affect the essence or substance of the notification granting exemption.
In Novopan Indian Ltd. the Court held that a person, invoking an exception or exemption provisions, to relieve him of tax liability must establish clearly that he is covered by the said provisions and, in case of doubt or ambiguity, the benefit of it must go to the State.
Issue Raised
Whether 18% GST Will be applicable on the leasing services provided to M/s. Abhijit Realtors and Infraventures Pvt. Ltd. ?
Facts
The Maharashtra Metro Rail Corporation Limited is engaged in establishing a Metro Railway System and/or Guided Urban Transit tem in the State of ran Transport needs.
The Applicant had issued a tender notice for licensing of Commercial space adjacent to Airport Metro Station, Nagpur
The Applicant has accepted the bid of M/s Abhijit Realtors and Infraventures Pvt. Ltd. in respect of licensing rights of commercial space adjacent to Airport Metro Station admeasuring 10,000 sqm built-up area and 4,054 Sqm basement.
18% GST Payable By Maharashtra Metro Rail Corp. On Providing Leasing Services: Maharashtra AAR
The Maharashtra Authority of Advance Ruling (AAR) ruled that 18% GST payable by the applicant-Maharashtra Metro Rail Corp. on providing leasing services.
The AAR held that a person who claims exemption or concession has to establish that he is entitled to that exemption or concession. A provision providing for an exemption, concession or exception, as the case may be, has to be construed strictly with certain exceptions depending upon the settings on which the provision has been placed in the Statute and the object and purpose to be achieved. If exemption is available on complying with certain conditions, the conditions have to be complied with. The mandatory requirements of those conditions must be obeyed or fulfilled exactly, though at times, some latitude can be shown, if there is a failure to comply with some requirements which are directory in nature, the non-compliance of which would not affect the essence or substance of the notification granting exemption.
In Novopan Indian Ltd. the Court held that a person, invoking an exception or exemption provisions, to relieve him of tax liability must establish clearly that he is covered by the said provisions and, in case of doubt or ambiguity, the benefit of it must go to the State.
Issue Raised
Whether 18% GST Will be applicable on the leasing services provided to M/s. Abhijit Realtors and Infraventures Pvt. Ltd. ?
Facts
The Maharashtra Metro Rail Corporation Limited is engaged in establishing a Metro Railway System and/or Guided Urban Transit tem in the State of ran Transport needs.
The Applicant had issued a tender notice for licensing of Commercial space adjacent to Airport Metro Station, Nagpur
The Applicant has accepted the bid of M/s Abhijit Realtors and Infraventures Pvt. Ltd. in respect of licensing rights of commercial space adjacent to Airport Metro Station admeasuring 10,000 sqm built-up area and 4,054 Sqm basement.
Case Information
Applicant Name: M/S Maharashtra Metro Rail Corp
Judicial Level & Location : Maharashtra AAR
Case Number : 115 of 2022-23
Date of Decision : 31/07/2024
Decision Against: Applicant
Judges: Shri. Ajaykumar V. Bonde Joint Commissioner Of State Tax, (Member) And Ms. Priya Jadhav, Joint Commissioner Of Central Tax, (Member)