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2014 (7) TMI 196 - HC - VAT and Sales TaxDevelopment of residential complexes - Works contract - Whether the activities, with which the revisionist is involved, would attract or not attract the provisions of the Uttarakhand VAT Act, 2005 - Revenue contends that land, upon which, such residential complexes would be constructed belongs to it; it has obtained necessary sanction to construct thereon and that it proposes to sell the constructed area - Held that:- No sooner a sale is effected, the provisions of the Act will become applicable and, accordingly, tax will be levied. Sale has been defined in Sub Section (40) of Section 2 of the Act, which clearly mentions that sale means any transfer of property in goods. Sale of goods being a sine qua non for application of the Act, as clarified in Sub Section (55) of Section 2 of the Act, such sale will include an agreement for carrying out construction of immovable property or commissioning of any immovable property. In other words, a person agreeing with another person to make a construction for a valuable consideration will be selling the construction made by him as goods covered by the Act, but a person, if he sells an immovable property after the same has been constructed, he will not be selling goods attracting the provisions of the Uttarakhand VAT Act, 2005. Matter remanded back to find out what is the object of the business of the revisionist, i.e. whether it is engaged in sale of immovable properties in the form of flats, apartments, etc. or it is undertaking construction of flats, apartments, etc. on behalf of others - Decided in favour of assessee.
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