2011 (9) TMI 1111 - HC - VAT and Sales Tax

Summary

Issues involved: Whether the allotment/agreement/sale of flats by real estate developers attracts liability of commercial tax and can be treated as 'works contract'.

Judgment Details:

Issue 1: Interpretation of 'works contract' in real estate transactions

The Court noted the reference made by the Supreme Court to a larger bench regarding the classification of tripartite agreements as 'works contract'. The petitioner argued that doubts raised on previous opinions should prevent the Assessing Officer from issuing show cause notices and making assessments. The Court opined that agreements involving construction of flats by developers could potentially be categorized as 'works contract', subject to individual case facts.

Issue 2: Interim orders and assessment proceedings

Acknowledging the numerous writ petitions and interim orders in similar cases, the Court decided to provide interim relief in the present case as well. It was ordered that assessments for the relevant year could proceed and be finalized, but the assessment order should not be served on the petitioner until further notice.

Additional Direction:

The Additional Chief Standing Counsel was tasked with compiling a list of similar cases to be consolidated for a joint hearing on 27th September, 2011, indicating a coordinated approach to addressing the legal issues at hand.