Case Details: State of Karnataka vs. Taghar Vasudeva Ambrish (2025) 37 Centax 102 (S.C.)
Judiciary and Counsel Details
- J.B. Pardiwala & K.V. Viswanathan, JJ.
Facts of the Case
The residential building in Bengaluru, co-owned by the respondent, was leased to a company that sublet rooms as hostels for long-term stays ranging from three to twelve months to students and working professionals. The Authority for Advance Rulings (AAR) and Appellate Authority for Advance Rulings (AAAR) denied exemption under Entry 13 of Notification No. 9/2017-Integrated Tax (Rate), dated 28-06-2017, on the ground that the company did not itself use the premises as a residence. The property was used as a residential dwelling through long-term accommodation, and municipal records reflected its residential nature. The matter was accordingly placed before the Hon’ble Supreme Court.
Supreme Court Held
The Hon’ble Supreme Court held that the property qualified as a residential dwelling since the accommodation was for long-term stays and municipal records confirmed its residential nature. The court observed that the condition of ‘use as residence’ under Entry 13 of Notification No. 9/2017-Integrated Tax (Rate), dated 28-06-2017, was fulfilled through the sub-lessees and did not require the immediate lessee to reside. It held that a narrow interpretation requiring the company itself to reside would defeat the legislative intent of exempting residential use from 18% GST. The exemption under Entry 13 was therefore activity-specific and not person-specific; all three statutory requirements were satisfied, and the department’s appeals were rejected.
List of Cases Cited
- Bandu Ravji Nikam v. Acharyaratna Deshbushan Shikshan Prasark Mandal — [W.P. No.4194 of 1989, dated 12-9-2002] — Referred [Para 11]
- CCE v. Allied Air-Conditioning Corpn. — 2006 taxmann.com 753 (SC) — Referred [Para 12]
- CCE v. Parle Exports (P) Ltd. — 1991 taxmann.com 77 (SC) — Referred [Para 57]
- Government of Kerala v. Mother Superior Adoration Convent — [2021] 126 taxmann.com 68 (SC) — Referred [Para 22]
- Kishore Chandra Singh Deo v. Babu Ganesh Prasad Bhagat — AIR 1954 SC 316 — Referred [Para 11]
- Mohinder Singh v. State of Haryana — AIR 1989 SC 1367 — Referred [Para 12]
- Shailesh Dhairyavan v. Mohan Balkrihna Lulla — (2016) 3 SCC 619 — Referred [Para 60]
- Union of India v. Wood Papers Ltd. — 1991 taxmann.com 77 (SC) — Referred [Para 55]
- Union of India v. Wood Papers Ltd. 1991 taxmann.com 77 (SC) = (1990) 4 SCC 256 — Followed [Para 55]
- Uratemp Ventures Limited v. Collins — (2001) 3 WLR 806 — Referred [Para 42]
- V.L. Kashyap v. R.P. Puri — (1976) 12 DLT 369 — Referred [Para 41]
List of Notifications Cited
- Notification No. 9/2017 – Integrated Tax (Rate) dated 28.06.2017
