Decided 13 October 2025 (Supreme Court interim order). The Supreme Court has issued notice and stayed GST assessment orders passed by CGST Nashik on joint development agreements (JDAs), in petitions by Arham Infra Developers AOP and Nirmite Buildtech. The Bombay High Court had earlier refused to entertain the writ petitions, holding that whether a JDA involves a taxable supply depends on the agreement's terms and must be decided in appeal.
Case at a glance
| Parties | Arham Infra Developers AOP and Nirmite Buildtech v. Union of India & Ors. |
| High Court | Bombay High Court, W.P. Nos. 8649 and 8650 of 2025, decided 29 July 2025 (writs dismissed with liberty to appeal) |
| Supreme Court | SLP (C) Nos. 26910 and 27330 of 2025, order dated 13 October 2025 (Justice Aravind Kumar and Justice R. Mahadevan) |
| Impugned orders | Assessment orders of 27 and 31 January 2025, AC CGST Nashik-I |
| Result | Notice issued; operation of assessment orders stayed |
Facts of the case
The petitioners challenged assessment orders levying GST in respect of joint development agreements, relying on earlier Bombay High Court orders such as Shrinivasa Realcon and Nirmal Lifestyle.
The petitions stated that no alternate remedy was available, though an appeal under section 107 lay against the orders.
Issue before the Courts
Should a High Court entertain a writ against a GST assessment on a JDA when an appeal is available, and does a JDA involve a taxable supply?
What the Courts held
- The Bombay High Court said there may be no serious dispute that JDAs do not involve a taxable supply, but the answer depends on the actual terms of each agreement; the title of an agreement is not conclusive.
- Such factual examination is best done by the appellate authority. The statement that no alternate remedy existed was false, and the petitions appeared to be filed to avoid pre-deposit.
- The writs were dismissed with liberty to appeal within four weeks after pre-deposit, without any objection on limitation.
- On 13 October 2025 the Supreme Court issued notice on the special leave petitions and stayed the operation of the assessment orders.
Practical takeaways for taxpayers
- The Supreme Court's stay gives breathing space to developers facing GST demands on JDAs; watch for its final decision.
- In writ petitions, state candidly that an appeal exists and explain why it is not efficacious; a false statement can lead to dismissal.
- If you choose the appeal route, comply with pre-deposit and file within the time allowed.
Frequently asked questions
Has the Supreme Court decided whether JDAs attract GST?
Not yet. It has only issued notice and stayed the assessment orders in these cases.
Why did the High Court refuse to hear the writ?
Because an appeal under section 107 was available and the dispute required examination of the agreement's terms.
Facing a similar GST dispute?
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This summary is based on the order of the Bombay High Court in Writ Petition Nos. 8649 and 8650 of 2025 and the Supreme Court in SLP (C) Nos. 26910 and 27330 of 2025. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.