9911796707
TMI Blog2021 (6) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... of the grant of the license and the second installment to be deposited within six months from the date of grant of license'. It is not related to the sale of the flats. Similarly for the EDC the Licensee has 'to pay proportionate development charges if the external development works as defined in clause (g) of section 2 are to be carried out by the Government or any other local authority. The proportion in which and the time within which, such payment is to be made, shall be determined by the Director - Both are not related with the number of flats to be constructed/sold or are to be paid even if the some/all flats kept for personal use. Since, the 'External Development' and 'Infrastructure Development' do contribute to the value of the flats, the charges for these beyond doubt form a constituent of the value of the construction service provided to the flat owners by the Appellant. The GST shall be applicable, as also provided under Section 15(2). Appeal dismissed. - HAR/HAAAR/2020-21/02 - - - Dated:- 4-6-2021 - SHEKHAR VIDYARTHI AND SUREST KISHNANI, MEMBER Present for the Applicant : Ms. Priyanka Singhla, Advocate Order under Section 101 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from buyers and paid further to respective Government Authorities will form part of value of taxable supplies being made by the Applicant? After notice and opportunity, the Advance Ruling Authority passed the impugned order wherein the authority ruled, The amount of statutory charges i.e. External Development Charges and Infrastructure Development Charges, recovered by the Applicant from buyers and paid further to respective Government Authorities will form part of value of taxable supplies being made by the Applicant . Being aggrieved with the impugned order the appellant M/s Ashiana Housing Ltd. had filed the present appeal. Pleadings of the Appellant: The Appellant has cited the following as the 2grounds for preferring of present appeal:- A. The impugned order has been passed in gross contravention of statutory provisions and principles of natural justice. B. The amount of EDC and IDC shall not be included in value of supply made by the appellant. Briefly, the Appellant has corroborated the grounds as under: - A. The impugned order has been passed in gross contravention of statutory provisions and principles of natural justice 1. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring: Ms. Priyanka Singhla, Advocate is attended the PH on 24.03.2021 through webex on behalf of the appellant M/ s Ashiana Housing Ltd. She reiterated the grounds already mentioned in the memorandum of the Appeal. Discussion and Finding We have considered the material on record including the appellant's grounds, submissions, statutory provisions etc. In terms of Section 101(1) of the Act, this Appellate Authority is mandated to pass such order as it thinks fit, confirming or modifying the ruling appealed against. We now proceed to record our discussions and findings. The Advance Ruling Authority has held the EDC and IDC charges as inclusive in the Value on the ground that provisions of the Sub Section 15(2) are very clear that all other taxes than applicable under the GST Law (viz. the CGST Act, SGST Acts, UTGST Act and IGST Act) form part of the Taxable Value under GST. Law is very unambiguous on this issue and same is specifically covered under the GST Laws.- Section 15. Value of Taxable Supply.- (1) ....................... (2) The value of supply shall include-- (a) any taxes, duties, cesses, fees and charges levied under any law f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd, 2014 (301) ELT 273 (SC) has been incorrectly relied by the Appellant. In this case Hon'ble Apex Court has held that Value Added Tax (VAT) is not added to the taxable Value. In GST era concept of SGST/ CGST/ IGST has replaced the VAT. Using the corollary, while arriving at the taxable value, the SGST/CGST/IGST is not added to the Value. In fact same is set-off with input credit of IGST/CGST/SGST along the supply chain to avoid the cascading effect of tax. It is thus clear that the decision relied upon by the Applicant is not applicable to the facts of the case. Any statutory charges have been held clearly inclusive in the Value of the supply of Services in terms of Section 15(2)(a) ibid. Similarly, the other Supreme court decision in Anand Swarup Mahesh Kumar V. Commissioner of Sales Tax, 1980 (46) STC 477 (SC) has been incorrectly relied upon in the appeal. In that case the market fee levied by the Market Committee of agriculture produce market has been held to be not includable in the Value for charging VAT. The commission charged has, however, been held as includable. Hon'ble Supreme Court has held that where seller or the commission agent, who so ever is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
