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The Madras High Court reportedly set aside a GST assessment order that included a ₹5,50,25,100 demand tied to projected revenue from two blocks where construction had not begun, according to a case summary published by LawLens on 9 October 2026. The Court remanded the matter for fresh consideration, subject to the builder depositing ₹50,00,000 within four weeks of receiving the order. The tax liability was not finally extinguished.
What the dispute was about
In M/s. Shree Velu Builders Private Limited v. State Tax Officer (ST), the petitioner challenged a first respondent order dated 27 March 2026. LawLens’s 9 October 2026 summary reports that the order raised a tax demand of ₹5,50,25,100, along with ₹2,40,19,438 in other liabilities.
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The builder particularly disputed projected revenue attributed to Block Nos. 12 and 13. It said construction of those blocks had not commenced and that the projection was based only on planning approval. These details and amounts are reported by the secondary summary; the original judgment was not available for verification.
What the High Court reportedly ordered
The Court set aside the 27 March 2026 order and sent the matter back for fresh consideration. The setting aside was conditional: it would take effect upon the petitioner depositing ₹50,00,000 within four weeks after receiving the order, according to LawLens.
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This was a remand, not a final ruling that no GST was payable. The tax authority was to reconsider the matter, and the ultimate treatment of the disputed amounts remains unresolved in the reported account.
Why the opportunity to respond mattered
The petitioner also argued that it had not been given a reasonable opportunity to file a detailed reply. The State’s position, as reported, was that sufficient opportunity had been provided. The summary does not establish how the Court resolved that disagreement or set out the Court’s detailed reasoning.
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What the report does—and does not—establish
The reported outcome concerns this assessment and the disputed projections for the two blocks. It should not be read as a general rule that GST can never be assessed before construction begins, or that planning approval alone is always insufficient. The available case summary does not establish the Court’s reasoning on those broader questions or the result of the fresh consideration.
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Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →For readers asking whether GST can be demanded on projected revenue from flats that have not been built, this case report offers a limited answer: the challenged order was set aside and remanded subject to a deposit, but the underlying liability was not finally decided. The reported figures and procedural details come from LawLens’s secondary summary, published 9 October 2026; the judgment itself was not retrieved.
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