Facts 
The petition challenged a show cause notice demanding GST of ₹59,40,000 plus interest on transfer of leasehold rights in MIDC land. 
The petitioner had assigned leasehold rights for ₹3.30 crore with MIDC’s consent and paid additional premium. 
Authorities treated the transaction as “supply of services” under Section 7 read with Schedule II and classified it as taxable miscellaneous services. 
 
Court Decision
The Court held that assignment of leasehold rights amounts to transfer of benefits arising out of immovable property and not a supply of services. 
It found that the transaction was neither lease nor sub-lease and the petitioner’s rights stood extinguished upon assignment. 
The activity lacked the essential element of being in the course or furtherance of business required under Section 7 of the CGST Act. 
Classification under “other miscellaneous services” was rejected as inapplicable. 
Accordingly, the show cause notice and adjudication order were quashed and set aside. 
 
Cases Referred
•    Gujarat Chamber of Commerce and Industry v. Union of India, (2025) 170