M/S Nbcc (India) Limited vs Additional Commissioner Cgst Delhi ... on 19 May, 2025

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Delhi High Court - Orders

M/S Nbcc (India) Limited vs Additional Commissioner Cgst Delhi ... on 19 May, 2025

Bench: Prathiba M. Singh

                          $~87
                          *         IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +         W.P.(C) 6687/2025 & CM APPL. Nos.30335-36/2025
                                    M/S NBCC (INDIA) LIMITED                 .....Petitioner
                                                  Through: Mr.Bhuvnesh Satija, Ms.vibhooti
                                                             Malhotra, Mr.Udit Sharma and
                                                             Mr.Aniket Khanduri, Advocates

                                                                  versus

                                    ADDITIONAL COMMISSIONER CGST DELHI SOUTH
                                                                               .....Respondent
                                                 Through: Ms. Samiksha Godiyal, SSC with
                                                          Mr.Tenzing N. Bhutia, Mr.B.D. Rao
                                                          Kundan, Advocates
                                    CORAM:
                                    JUSTICE PRATHIBA M. SINGH
                                    JUSTICE RAJNEESH KUMAR GUPTA
                                                       ORDER

% 19.05.2025

1. This hearing has been done through hybrid mode. CM APPL. No. 30336/2025 (Exemption)

2. Allowed, subject to all just exceptions. Application is disposed of. W.P.(C) 6687/2025 and CM APPL. No. 30335/2025

3. The present petition has been filed by the Petitioner- M/s NBCC (India) Limited challenging the order dated 29th January, 2025 ('hereinafter, the impugned order') passed by the Office of Principal Commissioner of Central Goods and Service Tax, Delhi South Commissionerate.

4. In this case, the Petitioner- NBCC (India) Limited has developed the Kidwai Nagar (East) Area for General Pool Residential Accommodation, as also the commercial spaces.

W.P.(C) 6687/2025 Page 1 of 3

This is a digitally signed order.

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5. It is the case of the Petitioner that a Memorandum of Understanding (hereinafter, 'MOU') was entered into between the NBCC (India) Limited and the Ministry of Urban Development (hereinafter, 'MoUD') on 16th July, 2013 for re-development of Kidwai Nagar (East).

6. An ESCROW agreement was also executed between the Petitioner, the MoUD and the Union Bank of India for operation and management of the lease proceeds from the Kidwai Nagar project. The Petitioner was identified as the implementing agency.

7. Thereafter, the Directorate General of GST Intelligence, Mumbai (hereinafter, 'DGGI') started an investigation upon the Petitioner regarding the Kidwai Nagar project and the allegation by the DGGI was that an ESCROW Account was opened for collection of the lease amounts which is ultimately meant to be transferred to either the MoUD or the Consolidated Funds of India. In respect of the amounts lying in the ESCROW account, the impugned order has been passed seeking payment of Goods and Service Tax (hereinafter, 'GST').

8. It is the case of the Petitioner that so far, there are two kinds of entities from whom these amounts are received by the NBCC (India) Limited:

business entities and non-business entities.

9. The said entities include: (1) Government Departments, (2) Autonomous Bodies and (3) Public Sector Undertakings (PSUs). Insofar as the Government Departments and the Autonomous Bodies are concerned, there is an exemption granted to the institutions from paying GST.

10. However, in respect of others, the GST is to be deposited by reverse charge. The demand is, therefore, completely untenable qua NBCC (India) Limited.

W.P.(C) 6687/2025 Page 2 of 3

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 29/06/2025 at 19:22:52

11. Issue notice.

12. Let instructions be sought in this matter as to whether the GST Department is in fact pressing for the GST demands, as raised in the impugned order, or whether the same ought to be resolved between the GST and the MoUD.

13. Let a meeting be held between the concerned Joint Secretaries at the MoUD and the Finance Ministry, in order to take a stand in this matter since as per the NBCC (India) Limited, the challenge in this case pertains to the Financial Year 2017-18 but the proceedings have also been commenced for subsequent years.

14. Let the meeting be held before 10th July, 2025. Subsequently, an affidavit be filed placing the Minutes of Meeting of the Joint Secretaries, by 31st July, 2025.

15. List on 18th August, 2025.

16. No coercive measures shall be taken against the Petitioner in the meantime.

PRATHIBA M. SINGH, J.

RAJNEESH KUMAR GUPTA, J.

MAY 19, 2025/SV/ss W.P.(C) 6687/2025 Page 3 of 3 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 29/06/2025 at 19:22:52

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Delhi High Court - Orders