The Supreme Court, after hearing the case of M/s. Safari Retreats Pvt. Ltd. & Ors. on 23rd August 2023 at 2:00 PM decided the next hearing before the bench of two members, Justice Abhay S. Oka and Justice Sanjay Karol. In the next hearing, the Supreme Court will regulate the Goods and Services Tax (GST) suggestions for immovable property.
The Chief Commissioner of CGST filed a civil appeal before the Supreme Court against the company registered as M/s Safari Retreats and Ors. on 16th October 2019.
M/s Safari Retreats is engaged in the Real estate business with owned or leased property. The activities of the business include buying, renting, selling, and operating self-occupied or leased real estate such as apartment buildings and dwellings, developing and subdividing real estate into lots, non-residential buildings, etc. Moreover, it constructs and sells land and cemetery lots, and operates apartment hotels and residential mobile home sites.
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As per the Supreme Court’s decision, the case was scheduled for the next hearing on 17th August 2023. In this hearing, the Apex Court may grant permission for submitting brief written suggestions in addition to a case law compilation.
According to the report, no additional documents pertaining to the matter have been submitted yet. It was also observed that neither party’s counsel has submitted their statement of the case at this point. However, it is not mandatory under the revised Supreme Court Rules of 2013. The next hearing has been scheduled for August 23 by the bench.
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The Assistant Solicitor General (ASG) argued that the legislation imposes limitations on credits when goods or services are used “on own account,” a term that lacks a precise definition. The ASG further contended that immovable assets like malls are not subject to GST, and utilizing credits from earlier stages before property construction for rental services contradicts the GST framework.
Referring to the VKC Footsteps case, the ASG argued that credits cannot be granted merely on the grounds of economic reasoning. He emphasized that such credit claims were also prohibited prior to the implementation of GST, and there is no inherent entitlement to make such claims.
Apart from M/s Safari Retreats, the respondents, in this case, include CBIC, Commissioner of Dept of Revenue, Ministry of Finance, Govt of India Govt of Odisha, represented by Additional Chief Secretary, Bhubaneswar Union of India, represented Secretary Govt. of India.
| Case Title | CHIEF COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX & ORS. Vs M/S SAFARI RETREATS PRIVATE LIMITED & ORS. |
| Citation | Civil Appeal No(s). 2948/2023 |
| Date | 17.08.2023 |
| Supreme Court | Read Order |
