The question does not pertain to the recipient of the supply in question as contended by M/s Erode Infrastructures nor is there any dichotomy in stating that as per the Act recipient of the supply in question cannot seek advance ruling under the Act. Accordingly, the application is not admitted and rejected without going into merits.
Maintainability of petition— The applicant has sought Advance Ruling on the following question:
Whether upfront lease amount paid to M/s. RLDA for the development of Multi-functional complex (Operational building) at Erode railway Junction for Long term lease for 45 years is exempt under GST
In the instant case, the lease agreement for a consideration of an upfront payment and annual rent to lease out the property by RLDA for the construction of Multipurpose complex facilitating the railway consumers is a supply of services in the course or furtherance of business by RLDA to the applicant as per Section 7 (1) (a) of the Act. Further, as per Section 2(105), RLDA is the ‘supplier’ as they are supplying the leasing of property service. The applicant’s contention is that they are the supplier as they are developing the property for RLDA.
However, in any transaction there has to a supplier and recipient. In the terms of the Lease agreement, the supplier is RLDA and recipient is the applicant who is leasing the land from RLDA for a fixed tenure and using it as permitted in the terms and conditions of the lease agreement. In this transaction, the applicant is the recipient and their contention that they are the supplier is incorrect.
Held that— Therefore, the question does not pertain to the recipient of the supply in question as contended by M/s Erode Infrastructures nor is there any dichotomy in stating that that as per the Act recipient of the supply in question cannot seek advance ruling under the Act. Accordingly, the application is not admitted and rejected without going into merits.
The question does not pertain to the recipient of the supply in question as contended by M/s Erode Infrastructures nor is there any dichotomy in stating that as per the Act recipient of the supply in question cannot seek advance ruling under the Act. Accordingly, the application is not admitted and rejected without going into merits.
Maintainability of petition— The applicant has sought Advance Ruling on the following question:
Whether upfront lease amount paid to M/s. RLDA for the development of Multi-functional complex (Operational building) at Erode railway Junction for Long term lease for 45 years is exempt under GST
In the instant case, the lease agreement for a consideration of an upfront payment and annual rent to lease out the property by RLDA for the construction of Multipurpose complex facilitating the railway consumers is a supply of services in the course or furtherance of business by RLDA to the applicant as per Section 7 (1) (a) of the Act. Further, as per Section 2(105), RLDA is the ‘supplier’ as they are supplying the leasing of property service. The applicant’s contention is that they are the supplier as they are developing the property for RLDA.
However, in any transaction there has to a supplier and recipient. In the terms of the Lease agreement, the supplier is RLDA and recipient is the applicant who is leasing the land from RLDA for a fixed tenure and using it as permitted in the terms and conditions of the lease agreement. In this transaction, the applicant is the recipient and their contention that they are the supplier is incorrect.
Held that— Therefore, the question does not pertain to the recipient of the supply in question as contended by M/s Erode Infrastructures nor is there any dichotomy in stating that that as per the Act recipient of the supply in question cannot seek advance ruling under the Act. Accordingly, the application is not admitted and rejected without going into merits.