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TMI Blog2023 (10) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... ruction depends upon the material used for construction. The cost of construction shall be the same without reference to the direction of the flat, the view from a particular flat vis- -vis the other flat situated on the same floor. The PLC/FRC are based on the choice of buyer and cannot be treated as cost of construction. For example, a flat situated on a higher floor over-looking a garden or seashore shall have better locational advantage than the flat in the same floor from where the garden or the seashore may not be visible. Nonetheless the cost of construction of both flats situated in a particular floor shall be the same. By definition, works contract does not include preferential location. Therefore the Revenue rejecting assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STA No.264/2019 filed by the Petitioner, by upholding the orders of the First Appellant Authority and the Assessing Authority, insofar as the rejection of deduction claimed by the Petitioner on Prime Location Charges? STRP No.41/2022 has been admitted to consider following questions of law: 1. Whether the Karnataka Appellate Tribunal is correct in rejecting Petitioner s claim of deduction/exemption on Prime Location charges? 2. Whether, in the facts and circumstances of the case, the Karnataka Appellate Tribunal is right in dismissing the STA No.265/2019 filed by the Petitioner, by upholding the orders of the First Appellant Authority and the Assessing Authority, insofar as the rejection of deduction claimed by the Petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : service tax is leviable on PLC/FRC and the same is not the part of the consideration for transfer of property; VAT cannot be levied because service tax has been paid on PLC/FRC as they are mutually exclusive laws; once a consideration is subject to levy, it cannot be subject to additional levy under the VAT; consideration for PLC cannot be taxed under the KVAT Act as none of the necessary attributes to levy tax are fulfilled; there is no rule for determination of sale price under the KVAT Act. 7. In support of his contention, Shri. Harish has placed reliance on following authorities: i) Suresh Kumar Bansal and Anuj Goyal Ors. Vs. Union of India Ors [ 2016 (6) TMI 192 ]; ii) Maharashtra Chamber of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l location or development of such complex but does not include services covered under sub clauses (zzg), (zzq), (zzzh) and in relation to parking place. 14. The above provision makes it clear that PLC/FRC are taxable services within the meaning of Finance Act. 15. Section 2(37) of the KVAT Act defines works contract as follows: (37) Works contract includes any agreement for carrying out for cash, deferred payment or other valuable consideration, the building, construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property; 16. Thus, works contract is an act carried out for consideration, the building ..... X X X X Extracts X X X X X X X X Extracts X X X X
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