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TMI Blog2023 (5) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing 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. HELD THAT:- The Notification dated 28.06.2017 would be applicable only in cases where the assessee is unable to supply the bifurcation of the construction as relatable to construction services or sale of land - The methodology set out under the Notification as relatable to construction services, is for bifurcation of the total consideration by way of a deeming fiction, to arrive at the deemed amount attributable to construction services and land costs. The deeming fiction would not apply in cases where the assessee is in a pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... COMMON ORDER This batch of ten writ petitions has been filed by a Company which is engaged 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e above subject please find below are the points against show cause notice; A) Short payment of output tax on the supply of construction 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 sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other, were independent of each other and required to be construed as a single transaction of supply of residential housing units. In support of the submission, they produced 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 sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) (5) 3 Heading 9954 (Construction services) (i) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier 9 - (Provisions of paragraph 2 of this notification shall apply for valuation of this service) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to supply the actual amount of the consideration received towards construction services and land cost. 10. In the present case, it is its consistent stand that such evidences are available with it, though, as learned Standing Counsel points out, such particulars do not appear to have been actually produced before the authority. The officer could well have sought such particulars instead of proceeding on the basis that the Notification would be applicable in all cases of property development as he has done. 11. Needless to say, in an event where the officer is of the view that the attribution adopted by an assessee is unsupported by hard evidences or the documents produced do not satisfies him that the attribution has been made in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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