๐๐๐๐๐ซ๐ข ๐๐๐ญ๐ซ๐๐๐ญ๐ฌ – ๐๐จ๐ฌ๐ญ ๐๐ฐ๐๐ข๐ญ๐๐ ๐๐ฎ๐ฉ๐ซ๐๐ฆ๐ ๐๐จ๐ฎ๐ซ๐ญ ๐๐๐๐ข๐ฌ๐ข๐จ๐ง ๐ข๐ง ๐ญ๐ก๐ ๐๐๐ฌ๐ ๐จ๐ ๐๐๐ ๐๐ฅ๐ข๐ ๐ข๐๐ข๐ฅ๐ข๐ญ๐ฒ ๐จ๐ง ๐๐จ๐ง๐ฌ๐ญ๐ซ๐ฎ๐๐ญ๐ข๐จ๐ง ๐จ๐ ๐ฌ๐ก๐จ๐ฉ๐ฉ๐ข๐ง๐ ๐ฆ๐๐ฅ๐ฅ (๐ข๐ฆ๐ฆ๐จ๐ฏ๐๐๐ฅ๐ ๐ฉ๐ซ๐จ๐ฉ๐๐ซ๐ญ๐ฒ) for the purpose of letting out premises in the malls to different tenants on which GST output liability to be paid.
๐๐ฎ๐ฉ๐ซ๐๐ฆ๐ ๐๐จ๐ฎ๐ซ๐ญ๐ฌ ๐ฌ๐๐ญ๐ฌ ๐ญ๐ก๐ ๐ข๐ง๐ญ๐๐ซ๐ฉ๐ซ๐๐ญ๐๐ญ๐ข๐จ๐ง ๐จ๐ 17(5)(๐) ๐ญ๐จ ๐๐ ๐๐จ๐ฅ๐ฅ๐จ๐ฐ๐๐ ๐๐ฒ ๐๐ฉ๐ฉ๐ฅ๐ฒ๐ข๐ง๐ ๐ ๐ฎ๐ง๐๐ญ๐ข๐จ๐ง๐๐ฅ๐ข๐ญ๐ฒ ๐ญ๐๐ฌ๐ญ ๐๐จ๐ซ ๐๐๐๐ข๐๐ข๐ง๐ ๐ฐ๐ก๐๐ญ๐ก๐๐ซ ๐๐ฎ๐ข๐ฅ๐๐ข๐ง๐ ๐ข๐ฌ ‘๐๐ฅ๐๐ง๐ญ’ ๐๐ง๐ ๐ญ๐ก๐ ๐ข๐ฌ๐ฌ๐ฎ๐ ๐ฆ๐ฎ๐ฌ๐ญ ๐๐ ๐๐๐๐ข๐๐๐ ๐ข๐ง ๐๐ฉ๐ฉ๐ซ๐จ๐ฉ๐ซ๐ข๐๐ญ๐ ๐ฉ๐ซ๐จ๐๐๐๐๐ข๐ง๐ ๐ฌ ๐ข๐ง ๐ฐ๐ก๐ข๐๐ก ๐๐๐ฃ๐ฎ๐๐ข๐๐๐ญ๐ข๐จ๐ง ๐๐๐ง ๐๐ ๐ฆ๐๐๐ ๐จ๐ง ๐๐๐๐ญ๐ฌ.
Key summary of the verdict:
โก Constitutional validity of clauses (c) and (d) of Section 17(5) is ๐๐๐๐๐๐
โก “plant or machinery” used in Section 17(5)(d) cannot be given the same meaning as “plant and machinery” defined by explanation to Sec 17
โก Whether a mall, warehouse, or building can be classified as a “plant” is a ๐๐๐๐ญ๐ฎ๐๐ฅ ๐ช๐ฎ๐๐ฌ๐ญ๐ข๐จ๐ง which has to be determined based on registered person’s business and role that building plays in the said business.
โก Buildings constructed for services like renting or leasing may qualify as a ‘๐ฉ๐ฅ๐๐ง๐ญ’, ๐ฌ๐ฎ๐๐ฃ๐๐๐ญ ๐ญ๐จ ๐ ๐๐ฎ๐ง๐๐ญ๐ข๐จ๐ง๐๐ฅ๐ข๐ญ๐ฒ ๐ญ๐๐ฌ๐ญ
โก Supreme Court ๐ซ๐๐ฆ๐๐ง๐๐๐ ๐ญ๐ก๐ ๐๐๐ฌ๐ ๐ญ๐จ ๐ญ๐ก๐ ๐๐ซ๐ข๐ฌ๐ฌ๐ ๐๐ข๐ ๐ก ๐๐จ๐ฎ๐ซ๐ญ for limited purposes of deciding whether, in the facts of the case, the shopping mall is a โplantโ as per Sec 17(5)(d)
Bottomline:
๐๐๐๐ก ๐๐๐ฌ๐ ๐ฐ๐ข๐ฅ๐ฅ ๐ก๐๐ฏ๐ ๐ญ๐จ ๐๐ ๐๐๐๐ข๐๐๐ ๐จ๐ง ๐ข๐ญ๐ฌ ๐ฆ๐๐ซ๐ข๐ญ ๐๐ฒ ๐๐ฉ๐ฉ๐ฅ๐ฒ๐ข๐ง๐ ๐ญ๐ก๐ ๐๐ฎ๐ง๐๐ญ๐ข๐จ๐ง๐๐ฅ๐ข๐ญ๐ฒ ๐ญ๐๐ฌ๐ญ ๐ข๐ง ๐ญ๐๐ซ๐ฆ๐ฌ ๐จ๐ ๐ญ๐ก๐ข๐ฌ ๐ฃ๐ฎ๐๐ ๐ฆ๐๐ง๐ญ. The issue must be decided in appropriate proceedings in which adjudication can be made on facts. The petitioners are free to adopt appropriate proceedings or raise the issue in appropriate proceedings.
The writ petitions are rejected, subject to the interpretation of 17(5)(d) made in the verdict by Supreme Court.