HC Rejects Writ Against GST Demand on BOT Annuity Project

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  • Last Updated on 16 June, 2026

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GST on BOT Annuity Payments

Case Details: Jorabat Shillong Expressway Ltd. vs. Union of India - [2026] 187 taxmann.com 95 (Meghalaya)

Judiciary and Counsel Details

  • H.S. Thangkhiew & B. Bhattacharjee, JJ.
  • S. Ghosh, Sr Adv., Philemon Nongbri, Ms A. Agarwal, Ms M. Wariach & E. Lalsangluaia, Advs. for the Petitioner.
  • Dr N. Mozika, DSGI, Ms M. Myrchiang, Adv., N. Syngkon & J.N. Rynjah, GAs for the Respondent.

Facts of the Case

The petitioner, engaged in the construction, operation and maintenance of the Jorabat-Shillong Expressway under the Build-Operate-Transfer (BOT) annuity model, challenged the GST demand raised on annuity payments received from the Government. It was contended that the services were covered by the exemption relating to access to a road on payment of annuity and that the concession agreement, having been executed prior to the introduction of GST, no tax liability could arise. The petitioner also questioned the jurisdiction of the officers issuing the show cause notice and adjudication order and challenged the validity of the relevant notifications and circulars empowering such officers. The Revenue, on the other hand, maintained that the petitioner was primarily engaged in works contract services involving construction, operation and maintenance of roads and that the annuity represented consideration for such taxable services. The dispute was accordingly placed before the Meghalaya High Court.

High Court Held

The High Court observed that the petitioner had an effective statutory appellate remedy under the CGST Act and that the issues raised involved the interpretation of statutory provisions and the classification of services, which could appropriately be examined by the appellate authority. It further held that the officers issuing the show cause notice and adjudication order were duly empowered as “proper officers” under the relevant notifications issued under the CGST Act. The Court declined to interfere in the exercise of its writ jurisdiction, observing that none of the recognised exceptions warranting bypass of the alternate remedy had been established.

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied