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TMI Blog2017 (1) TMI 1564X X X X Extracts X X X X X X X X Extracts X X X X ..... ilder and promoter, and is aggrieved by the orders passed by the authorities under the U.P. VAT Act, 2008, in so far as penalty has been imposed upon it under Section 54(1)(7) of the VAT Act, for not securing registration under Section 18(1) of the Act, although the revisionist was performing works contract w.e.f. May, 2013 onwards. 2. Facts, giving rise to filing of the present revision, are that the revisionist is a company, registered under the provisions of Indian Companies Act, 1956, and is engaged in the business of development and sale of residential flats. It transpires that in respect of certain plot of land, which belonged to other persons, a builder's agreement was executed between them, which permitted revisionist to undertake work of constructions of flats. Such agreement is said to have been executed in the facts of the present case on 21.6.2012, which was followed with subsequent supplementary agreements. The revisionist pursuant to this agreement came in possession over the land. The revisionist also advertised sale of flats and received money from prospective purchasers. It is not in dispute that allotment letters were issued by the revisionist in May, 2013, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tered, and the transaction was also liable to payment of tax. A subsequent decision of the Apex Court in M/S. Larsen and Toubro Limited and another Vs. State of Karnataka and another, reported in 2013 U.P.T.C. 1277, is also relied upon. 5. I have heard learned counsel for the parties, and have perused the materials brought on record. 6. It is admitted to the revisionist that it is not the owner of land, and has merely entered in a builder's agreement with owners of the land for raising constructions. It is not in dispute that revisionist has advertized, and has received application from the prospective purchasers for sale of flats. Pursuant to such agreement, revisionist has also received various amount towards instalments. From the materials brought on record, it is apparent that revisionist has merely entered into a works contract, inasmuch as amount which it had received, is being utilized for the purpose of raising construction of flats. The goods and materials, which are utilized for performing the works contract is liable to payment of tax under the U.P. VAT Act, 2008. Section 18(1) of the Act provides as under:- 18. Voluntary Registration.- (1) On Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uced hereinafter:- 19. To consider whether the Appellants are executing works contract one needs to look at a typical Agreement entered into with the purchaser. The relevant clauses are clauses (q), (r) of the recitals and clauses 1, 5(c) and 7, which read as follows: (q) (i) Construction of the said multi-storeyed building; (ii) Sale of the units in the aforesaid multistoreyed building to different persons in whose favour ultimately a Deed of Conveyance would be obtained by the Holders, directly from the Vendors, of an undivided fractional interest in the said land (i.e. the area of 5910.17 sq. metres described in the First Schedule hereunder written) and such owner of units would own, on ownership basis, the respective units on condition that an Agreement would be entered into between the Holders on the one hand and the persons (desiring to acquire on ownership basis an unit in such multi-storeyed building) on the other hand and it would be an essential, integral and basic concept, term and condition of the proposed transaction (which would be by way of a package deal not capable of being segregated or separated or terminated one without the corresponding effect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fulfilled by the Prospective Purchaser, on the basis of which this Agreement has been entered into by the Holders/Developers and the due and proper fulfillment whereof are to be conditions precedent to any title being created and / or being capable of being documented by the Prospective Purchaser in the aforesaid fractional interest in the land described in the First Schedule hereunder written and/or in the said premises: (a)-(b) * * * (c) The overall control and management of the project and the development and completion of the said building shall be with the Developers and furthermore the Developers are and shall continue to be in possession of the said land and building and shall be entitled to a lien thereon and that the Prospective Purchaser shall not be entitled to claim or demand from the Holders possession of any portion of the said land or to claim or demand from the Developers possession of the said premises unless and until the Prospective Purchaser has paid in full through the Holders the full consideration money payable to the Holders under Clause 2 above and the full consideration money payable to the Developers under Clause 3 above. * * * * 7. 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