9911796707
TMI Blog2023 (5) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... in property development. It is a regular assessee under the provisions of the Tamil Nadu Goods and Services Tax Act, 2017, (in short, 'Act'). 2. The business of the Company relates to supply of construction services as well as works contract relating to immovable property. It had launched a residential township project called 'Avigna Properties' in Mahindra World City 3. In respect of periods 2017 to March, 2019, (period in question), show-cause notices were issued to the petitioner outlining various points identified by the assessing authority as necessitated discussion and finalization. One of the issues, in common, related to alleged short payment of output tax qua supply of construction services. 4. The assessing auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction services. It is submitted that levy of GST on the sale value of land under the proportionate of 70 : 30 is unlawful and illegal. It is further submitted stamp duty Act prescribed and levy on the sale value as per the Guidelines value of registration department. In this regard registration department is authority to levy stamp duty on the sale value of land. It is therefore submitted levy of GST on the proportionate of 70:30 of the total value of construction is unlawful. It is stated that we have mentioned actual sale consideration of land and paid necessary stamp duty under the provisions of stamp duty act. Therefore it is submitted that levy of GST as proposed by you is illegal and double levy (ie) GST to be levied as per 70:30 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced formats of sample sale and construction agreements, illustrating the manner in which liability must be reckoned. 7. The 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. The payment of stamp duty, according to him, is of no relevance in such circumstances. The operative portion of the impugned order reads as follows:- "(ix) The notification aforesaid itself does not permit the distinguishing of sale of land and supply of construction servicves in such cases as provides for levy of tax on the 2/3rd value of the total amount charged and the ambit of the 'total amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpetent authority or after its first occupation, whichever is earlier 9 - (Provisions of paragraph 2 of this notification shall apply for valuation of this service) (ii) composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017. 9 - (iii) construction services other than (i) and (ii) above 9 - ........ 2. In case of supply of service specified in column (3) of the entry at item (i) against serial no.3 of the Table above, involving transfer of property in land or undivided share of land, as the case may be, the value of supply of service and goods portion in such supply shall be equivalent to the total amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts 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. He may not however proceed on the basis that the formula as per deeming fiction is the only method of assessment in such cases. 12. In light of the discussion as aforesaid and being of the unambiguous view that the position taken by the authority on merits is not the correct view, assessments impugned in WP.Nos.6431 and 6434 of 2020 are set aside. As far as the assessments in the other writ petitions are concerned, they have a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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