Summary
- The Bombay High Court has ruled that the assignment of leasehold rights constitutes a transfer of immovable property, not a supply of service under the Goods and Services Tax regime.
- This landmark decision arose from a case involving Aerocom Cushions Private Limited, which challenged GST demands on leasehold rights assigned after regulatory approvals from MIDC.
- The Supreme Court's dismissal of the Special Leave Petition further solidifies the High Court's ruling, providing crucial clarity for taxpayers in similar disputes across India.
- This judgment is expected to significantly impact GST litigation and transactional structuring in sectors reliant on long-term leasehold arrangements.
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