Home Case Index All Cases GST GST + HC GST - 2023 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (5) TMI 169 - MADRAS HIGH COURTAlleged short payment of output tax qua supply of construction services - supply of construction services involving the transfer of property in land or undivided interest in land - Applicability of N/N. 11/2017-Central Tax (Rate) dated 28.06.2017 - assessing authority concludes that the Notification does not permit distinguishing of sale of land and supply of construction services and in cases of composite construction, a 70:30 formula is liable to be adopted. HELD THAT:- The Notification dated 28.06.2017 would be applicable only in cases where the assessee is unable to supply the bifurcation of the construction as relatable to construction services or sale of land - The methodology set out under the Notification as relatable to construction services, is for bifurcation of the total consideration by way of a deeming fiction, to arrive at the deemed amount attributable to construction services and land costs. The deeming fiction would not apply in cases where the assessee is in a position to supply the actual amount of the consideration received towards construction services and land cost. In the present case, it is its consistent stand that such evidences are available with it, though, as learned Standing Counsel points out, such particulars do not appear to have been actually produced before the authority. The officer could well have sought such particulars instead of proceeding on the basis that the Notification would be applicable in all cases of property development as he has done - in an event where the officer is of the view that the attribution adopted by an assessee is unsupported by hard evidences or the documents produced do not satisfies him that the attribution has been made in an appropriate manner commensurate with business practices and costs in that particular area, he is alway at liberty to seek more particulars or to apply the deeming fiction as per the Notification, rejecting the attribution made by the assessee. However, pending writ petitions, returns have been filed by the petitioners and my attention is thus drawn to Notification No.6 of 2023 dated 31.03.2023, which is a beneficial notification providing that if returns were filed on or before 30.06.2023, orders of assessment passed under Section 62(1) shall be deemed to have been withdrawn - Petition allowed.
|