Work contract versus sale of immovable property: VAT liability turns on whether construction was for another or only sale of completed flats.

Construction undertaken for another for valuable consideration falls within the concept of a work contract and may attract VAT under the Uttarakhand VAT Act, while sale of completed immovable property does not amount to a sale of goods for charging purposes. The legal distinction turns on whether the activity is construction on behalf of others or only transfer of finished flats and apartments as immovable property. The Commissioner was required to re-examine the petitioner's activity on that basis, applying the statutory definitions of sale, transfer of property in goods, and work contract.

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Issues: Whether the petitioner's activity of developing residential complexes amounted to a work contract attracting VAT under the Uttarakhand VAT Act, 2005, or merely to sale of immovable property outside the charging provisions.

Analysis: Tax under Section 3(1) arises on a sale within the State, and "sale" under Section 2(40) covers transfer of property in goods. Section 2(55) treats a work contract as including an agreement for construction, fabrication, commissioning or similar activity for consideration. On that basis, a person undertaking construction for another for valuable consideration would be making a taxable supply within the Act, whereas a person selling completed immovable property after construction would not be selling goods for the purposes of the Act.

Conclusion: The question whether the petitioner was engaged in sale of flats and apartments as immovable property or in construction on behalf of others required fresh determination by the Commissioner on the stated legal basis.

Final Conclusion: The matter was sent back for reconsideration in light of the legal distinction between taxable work contracts and non-taxable sales of completed immovable property.

Ratio Decidendi: Construction undertaken for another for consideration falls within the concept of work contract and may attract VAT, but sale of completed immovable property does not amount to sale of goods under the charging provisions.

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