COSIA has filed a writ petition before the Hon’ble Bombay High Court challenging the levy of GST on assignment of lease of industrial plots in MIDC/SIDC areas. The petition questions both the constitutional validity of certain provisions of the CGST Act, 2017 and the jurisdiction to impose such levy. The matter, along with connected petitions filed by other associations, was listed before the Division Bench of the Hon’ble Bombay High Court on 08.09.2025.
Counsel and Senior Counsel representing COSIA and other associations were present. The Learned Advocate General for the State of Maharashtra, along with Department Counsels, appeared on behalf of the Respondents.
After hearing both sides, the Hon’ble Court has adjourned the matter to 10.10.2025. Importantly, the Court has extended the interim relief earlier granted to the Petitioners until the next date of hearing. Notice has been issued to the Learned Attorney General of India since the petitions challenge the vires of certain provisions of the CGST Act, 2017.
A gist of the proceedings is captured below:
- The Learned Advocate General raised a preliminary objection on the ground of alternate remedy, contending that the Petitioners had prematurely approached the Hon’ble Court without exhausting remedies available under GST law.
- On behalf of the Petitioners, it was submitted that the challenges raised — namely, (a) the constitutional validity of certain provisions of the CGST Act, and (b) the lack of jurisdiction to levy GST on the transactions in question — are issues that cannot be adjudicated by the statutory adjudicating or appellate authorities under GST law, and therefore require consideration under the writ jurisdiction of the High Court.
- Reliance was placed on the earlier Order of the Hon’ble Court dated 04.03.2025 in the captioned petitions, where interim relief had been granted after noting that the issue is important and requires judicial determination. It was further highlighted that the question of alternate remedy had already been raised earlier by the Respondents but was not accepted by the Court while granting relief.
- Reference was also made to the judgment of the Hon’ble Gujarat High Court in Gujarat Chamber of Commerce & Industry & Ors. v. UOI [2025 (1) TMI 516], where similar issues were entertained, heard on merits, and decided in favour of the petitioners by holding that the transactions fell outside the scope of GST levy.
- After hearing the submissions, the Hon’ble Court adjourned the matter to 10.10.2025 and continued the interim protection granted earlier.
COSIA continues to actively pursue this matter to safeguard the interests of MSMEs and ensure that unjust GST levies on assignment of lease transactions in industrial plots are not imposed.
