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TMI Blog2014 (7) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... nce to levy sales tax on the sale of goods in an agreement of sale of flat which also has a component of a deemed sale of goods. Aspects theory though does not allow the State legislature to entrench upon the Union List and tax services by including the cost of such service in the value of goods but that does not detract the State to tax the sale of goods element involved in the execution of works contract in a composite contract like contract for construction of building and sale of a flat therein. Decision in the case of Larsen & Toubro Ltd. v. State of Karnataka [2013 (9) TMI 853 - SUPREME COURT] followed - developer has paid VAT/Sales Tax on the entire material cost that was used for construction of the building and in the present ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd they need not be considered independently. The first question reads thus: (1) Whether on the facts and in the circumstances of the case and in law the Tribunal is justified in giving a finding that deducting the value of land from the total receipt of the builder is impermissible, but only value of the transfer of property in goods has to be considered for the purpose of assessment by adding G.P., as the same is against provisions of law? In short, the question that falls for our consideration is whether the land value should form part of taxable value for levy of VAT or Sales Tax ? We have perused the judgment of the Supreme Court in Larsen Toubro Ltd. (supra). It would be advantageous to reproduce the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... poration of goods. From bare perusal of the observations made by the Supreme Court in paragraph-100 and the conclusion drawn in sub-paragraph (xi) of para-101, it is clear answer to the question raised in the revision petitions. We do find ourselves in agreement with learned senior Counsel for the respondent that the question raised in these revision petitions is squarely covered by the judgment of the Supreme Court in Larsen Toubro Ltd. (supra). Learned counsel for the petitioner does not dispute this legal position. Hence we answer the substantial question of law in favour of assessee and against the Revenue. Before we part, we record the statement of learned senior Counsel for the respondent, made on instructions from his client ..... X X X X Extracts X X X X X X X X Extracts X X X X
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