Case Details: Assistant Commissioner (Anti Evasion) vs. Aerocom Cushions Pvt. Ltd. (2026) 42 Centax 414 (S.C.)
Judiciary and Counsel Details
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- Dipankar Datta & Satish Chandra Sharma, JJ.
- S/Shri S. Dwarkanath, A.S.G., Gurmeet Singh Makker, AOR, Anmol Chandan, Padmesh Mishra, Shambhavi Sharma & Shaswat Parihar, Advs., for the Petitioner.
- S/Shri Dev Agrawal, Shubh Gautam, Vinay Sharaff, Advs. & Divyanshu Rai, AOR, for the Respondent.
Facts of the Case
A notice under section 74(1) of the CGST Act and the Maharashtra GST Act was issued to the petitioner alleging concealment of a transaction involving the assignment of leasehold rights in a plot allotted by MIDC, in favor of a third-party assignee. The department treated the assignment of leasehold rights as a supply of service under section 7(1) of the CGST Act and sought to levy GST on the transaction. The petitioner challenged the notice before the High Court, contending that the transaction constituted a transfer of immovable property and did not constitute a supply in the course or furtherance of business. The High Court examined the nature of the leasehold rights exercised by the petitioner and held that the transaction involved the assignment and transfer of benefits arising out of immovable property. Aggrieved by this decision, the department filed a special leave petition before the Supreme Court.
Supreme Court Held
The Hon’ble Supreme Court observed that it was not inclined to interfere with the judgment and order passed by the High Court. The Court thereby affirmed the view that the assignment and transfer of leasehold rights in the plot allotted by MIDC constituted a transfer of benefits arising out of immovable property and not a supply of service under section 7 of the CGST Act. The Court further confirmed that the essential element of “supply”, namely that the transaction must be undertaken in the course or furtherance of business, was absent in the present case. Accordingly, the special leave petition filed by the department was dismissed.
List of Cases Reviewed
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- Aerocom Cushions (P.) Ltd. v. Assistant Commissioner (Anti-Evasion), CGST & CX, Nagpur-1 — [2026] 182 taxmann.com 432) / 106 G.S.T.L. 145 (Bombay) — SLP dismissed [Para 2]
