Land value excluded from taxable turnover in a joint development works contract, with remaining issues left open for tribunal review.

In a works contract arising from a joint development agreement, land value was treated as not includible in the taxable turnover because the governing legal position, as stated to be covered by the Supreme Court in Larsen and Toubro Limited v. State of Karnataka, placed that component outside the tax base. The issue was therefore decided in favour of the assessee and against the State. The remaining questions were not finally adjudicated in this order and were left open for the Tribunal to consider in accordance with earlier remand directions.

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Issues: Whether land value was liable to be included in the taxable turnover arising from a joint development agreement and works contract.

Analysis: The principal question was stated to be covered by the decision of the Supreme Court in Larsen and Toubro Limited v. State of Karnataka, and on that basis the issue of land value was treated as concluded against the State. The remaining questions were not finally adjudicated in this order and were left open for consideration by the Tribunal in accordance with the earlier remand directions.

Conclusion: Land value was not liable to be included, and the issue was decided in favour of the assessee and against the State.

Ratio Decidendi: In a works contract arising from a joint development arrangement, land value is not includible in the taxable turnover where the governing legal position treats that component as outside the tax base.

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