NATURAL JUSTICE UPHELD: HAZARIBAGH BUILDERS WINS LAND DISPUTE IN HC

NATURAL JUSTICE UPHELD: HAZARIBAGH BUILDERS WINS LAND DISPUTE IN HC

RAJASTHAN APPELLATE AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Before the Bench of

Sh. Pramod Kumar Singh, Member (Central Tax)

Sh. Abhishek Bhagotia, Member (State Tax)

Case Title : M/s Hazari Bagh Builders Private Limited

(GST AAAR RAJASTHAN)

Appeal No. RAJ/AAAR/APP/03/2020-21

Advance Ruling No. RAJ/AAR/2020-21/05 dated 30. 6.2020

ORDER NO. RAJ/AAAR/03/2020-21

Date of Judgment/Order- 18th November 2020

BRIEF FACTS OF THE CASE

Para No. 3.1. M/s Hazari Bagh Builders Pvt. Ltd., 104, LIC Colony, Vaishali Nagar, Ajmer-305001 is holder of GST Registration No. 08AAECH7175C1ZL.

Para No. 3.2. Rail Land Development Authority (hereinafter referred to as “RLDA”), a statutory authority under Ministry of Railway, Government of India having its office near Safdarjung Railway Station, Moti Bagh-I, New Delhi issued a Request for proposal (RFP) (enclosed at Page 134 in the Lease Agreement Executed between RLDA and M/s Hazari Bagh Builders Pvt. Ltd) which was publicized by RLDA for grant of lease of Railways land at Hazari Bagh, Ajmer for 99 years on 15.02.2018 for Residential Purpose. M/s. H.S. Mehta Infra Pvt. Ltd. Ajmer submitted the bids for Plot A at Rs.159818170.00 lease premium and for Plot B as Rs.319074800.00 lease premium. It was mentioned in the financial bid Form-12 of both Plots A and B that 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). After the bids were submitted the Letter of acceptance (LOA) (Page 16-17 of lease Agreement) was issued on 26.09.2018 by RLDA to the consortium of M/s. H.S. Mehta Infra Pvt. Ltd. Ajmer (Lead Member), M/s G.S. Build State Private Limited and M/s Sankalp Realmart Pvt. Limited., 104, LIC Colony, Vaishali Nagar, Ajmer for combined land parcels of two plots A and B having quoted combined lease premium of both plots as Rs.478892970.00 with their letter No. 371 dated 26.09.2018. As per LOA, the Appellant will also have to deposit ‘Annual lease Rent’ which is Rs.200000/- for both the plots, to be revised upwards by 15% every three years. It was requested by RLDA to the Appellant. to Form a new SPV as per conditions mentioned in the bid and pay Rs.143667891/- towards the payment of first installments of lease premium along with interest as applicable with applicable GST if any or as applicable on the date of deposition of the said payments. M/s. H.S. Mehta Infra Pvt. Ltd. Ajmer as lead partner with consortium formed a new SPV as per bid conditions named M/s Hazari Bagh Builders Pvt. Ltd. Ajmer and received its GST No. as 08AAECH7175C1ZL as mentioned at Page 52 of the lease agreement. New SPV I.e. Appellant deposited the amount of Rs.158657105/- by various RTGS as given detail on page No. 3 of lease agreement during February, 2019 as lease premium and interest. As per the terms of the Lease Agreement by way of Clause 26 (Page 399 of agreement), certain conditions have been enlisted where the lease agreement can be terminated if the same are not fulfilled. Appellant Company is registered in the State of Rajasthan and having GSTIN in State of Rajasthan. The Appellant Company has entered into a long term Lease Agreement of 99 years with RLDA for undertaking residential development as on 08.11.2019.

ORDER

Para No. 7. The appeal filed by the Appellant has no merits and rejected accordingly.