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2021 (3) TMI 538 - HC - VAT and Sales TaxLevy of tax on sale of apartments - works contract or not - whether petitioner is liable for pending under Section 72(2) of the Karnataka Value Added Tax Act, 2003? - HELD THAT:- In the case of COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] it has been held that the activity of construction undertaken by the developer would be worst contract only from the stage the developer enters into a contract with purchaser of the flat and the value addition made to the goods transferred after the agreement is entered into with purchaser of the flat can only be made chargeable to tax by the State Government. Thus the decision of the Supreme Court by which parameters have been fixed with regard to levy of value Added Tax on Works contract was laid down after the tribunal had passed the order on 24.06.2011. The tribunal therefore has taken into account the law as prevailing prior to the decision of the three judge bench of the Supreme Court in L & T supra. The machinery provisions exist in the Act and the Rules viz., Section 3(1) 4(1) and Rules 3 (2) (l) & (m) of the Rules. The effect of the aforesaid machinery provisions has to be considered in the light of the decision of the larger bench of the Supreme Court in L & T supra and the liability of the petitioner has to be assed to pay the Value Added Tax afresh. Petition disposed off.
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