TaxTMI 
TaxTMI 
2017 (1) TMI 1564
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.... a builder's agreement was executed between them, which permitted revisionist to undertake work of constructions of flats. Such agreement is said to have been executed in the facts of the present case on 21.6.2012, which was followed with subsequent supplementary agreements. The revisionist pursuant to this agreement came in possession over the land. The revisionist also advertised sale of flats and received money from prospective purchasers. It is not in dispute that allotment letters were issued by the revisionist in May, 2013, and pursuant to such allotment letter, it received instalments from the prospective purchasers. The revisionist thereafter proceeded to raise constructions, and after completing the construction, it has been transferred to the prospective purchasers. The department initiated proceedings against the revisionist on the premise that revisionist had entered into a works contract, pursuant to which constructions had been raised, and in respect of building material utilized for construction, the revisionist was liable to pay tax. It was also held that since the work performed by the revisionist amounted to a works contract, as such, registration under Sectio....
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....h agreement, revisionist has also received various amount towards instalments. From the materials brought on record, it is apparent that revisionist has merely entered into a works contract, inasmuch as amount which it had received, is being utilized for the purpose of raising construction of flats. The goods and materials, which are utilized for performing the works contract is liable to payment of tax under the U.P. VAT Act, 2008. Section 18(1) of the Act provides as under:- "18. Voluntary Registration.- (1) On January 1, 2008, a dealer, who is otherwise not liable to pay tax, and if such dealer either carries on business or intends to carry on business, may apply at any time on or after January 1, 2008 for issue of registration certificate in the form and manner prescribed under subsection (2) of section 17 alongwith proof of deposit of fee prescribed under that sub-section." 7. In the facts of the present case, a finding has been returned by the authorities that dealer is carrying on business pursuant to works contract since May, 2013, without a valid registration obtained for the purposes. It is on such count that the authorities have proceeded to levy penalty unde....
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.... and such owner of units would own, on ownership basis, the respective units on condition that an Agreement would be entered into between the Holders on the one hand and the persons (desiring to acquire on ownership basis an unit in such multi-storeyed building) on the other hand and it would be an essential, integral and basic concept, term and condition of the proposed transaction (which would be by way of a package deal not capable of being segregated or separated or terminated one without the corresponding effect on the other) that K. Raheja Development Corporation as the Land-holder would agree to sell to such persons an undivided fractional interest in the said land described in the First Schedule hereunder written on condition that they i.e. M/s K. Raheja Development Corporation as Developers on behalf of and as Developers of such person would construct for, as a unit ultimately to belong to such person a unit or units that would be so mutually selected and settled by and between K. Raheja Development Corporation and the person concerned. (r) The Prospective Purchaser is interested in acquiring ownership rights in respect of unit/s Nos. 1101 on the eleventh floor/s of the....
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....l be entitled to a lien thereon and that the Prospective Purchaser shall not be entitled to claim or demand from the Holders possession of any portion of the said land or to claim or demand from the Developers possession of the said premises unless and until the Prospective Purchaser has paid in full through the Holders the full consideration money payable to the Holders under Clause 2 above and the full consideration money payable to the Developers under Clause 3 above. * * * * 7. If the Prospective Purchaser commits default in payment of any of the instalments of consideration aforesaid on their respective due dates (time being the essence of the contract) and/or in observing and performing any of the terms and conditions of this Agreement, the Holders/Developers shall be at liberty, after giving 15 days notice specifying the breach and if the same remains not rectified within that time, to terminate this Agreement, in which event, a sum equivalent to 10% of the amounts that may till then have been paid by the Prospective Purchaser to the Holders and the Developers respectively shall stand forfeited. The Holders and the Developers shall, however, on such termination, refund....