HC Quashes GST Demand on Sale of Land | Orders Fresh Adjudication
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- Last Updated on 6 June, 2026
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Case Details: R.A.R. Retail and Infra LLP vs. State Tax Officer - [2026] 187 taxmann.com 128 (Madras)
Judiciary and Counsel Details
- C. Saravanan, J.
- Ms G. Vardini Karthick for the Petitioner.
- V. Prashanth Kiran, Govt. Adv. for the Respondent.
Facts of the Case
The petitioner, engaged in the purchase and sale of land, was issued a show-cause notice and, thereafter, an assessment order under Section 73 of the CGST and Tamil Nadu GST Act, treating the amounts reflected in FORM 26AS as taxable on the ground of non-production of sale deeds before the assessing authority. The petitioner contended that the transactions pertained to the sale of immovable property, which is outside the ambit of GST, and submitted that the entries reflected in FORM 26AS, when read together with the corresponding sale deeds, clearly evidenced transfers of land and not supplies liable to GST. Thereafter, pursuant to an application filed by the petitioner, a rectification order under Section 161 was also passed, whereby the assessment was substantially maintained. The petitioner challenged both the assessment order under Section 73 and the rectification order before the writ jurisdiction. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the nature of the transaction, as evidenced from the sale deed and the corresponding FORM 26AS, prima facie indicated that the subject matter was sale of immovable property. It further held that such sale of land falls outside the purview of GST under Section 7 read with Section 9 of the CGST Act and Tamil Nadu GST Act, and therefore could not be subjected to tax merely on account of non-production of documents before the assessing authority. The Court observed that the assessment order under Section 73 and the consequential rectification order under Section 161 were founded on an incomplete appreciation of material records and required reconsideration. Accordingly, it set aside both orders and remitted the matter for fresh adjudication on merits after issuing due notice to the petitioner.
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