Title: M/S Ram Kamal Healthcare Pvt. Ltd. v. Union Of India And 3 Others
Decided on: 9th October, 2023
WRIT TAX No. – 1435 of 2018
CORAM: Hon’ble Justices Saumitra Dayal Singh and Vinod Diwakar
Facts of the Case
A letter/communication dated 24.08.2018 issued by the Advisor to Yamuna Expressway Industrial Development Authority (hereinafter referred to as ‘YEIDA’) requiring the petitioner to deposit GST at the rate of 18% on the premium Rs. 3.80 crores charged by the YEIDA against Institutional Plot H-02, Sector 22-A, YEIDA admeasuring 4,000 square meters, allotted to the petitioner on 28.04.2015.
Courts analysis and decision
It was analyzed by the bench that it is a fact that YEIDA had not entertained any scepticism regarding the fact that the contested transaction involved the execution of a lease deed by a government industrial development authority for a duration longer than 30 years. Regarding the availability of an exemption to an allocation made for the establishment of a hospital, nursing home, diagnostic centre, etc., there was some uncertainty which was later seeked by YEIDA and cleared by the appropriate authority.
The court found that the YEIDA’s position is completely unsupported by the law. The Authority for Advance Ruling established that any ambiguity in the Exemption Notification’s text was dispelled. The YEIDA specifically questioned whether the premium assessed on the property allocated to build a hospital would be covered by the exemption notification. Thus stating, “As to tax of exemption of the transaction in question, there could never arise any doubt as to its basic applicability.”
The court observed that the exemption granted to the petitioner by virtue of the initial Notification issued under Section 11 read in conjunction with the ruling of the Authority for Advance Ruling is unconditional. As a result, the letter from YEIDA dated August 24 is completely without legal and factual foundation.
“Besides absence of conditions imposed by the legislature while granting exemption, no fact allegation has been made in the said communication of any specific condition having been violated by the petitioner.” The court noted while allowing the petition.
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Written by- Aashi Narayan
