2020 (2) TMI 599

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....the impugned intimation dated 02.11.2015 intimation and order dated 31.05.2016, the petitioner has been called upon to pay VAT under section 5/6 of the TN VAT Act, 2006. The petitioner's father had settled an immovable property along with an existing house in favour of the petitioner and her sister in the year 2004. 3. The petitioner and her sister later executed an agreement with the 3rd respondent on 09.03.2012, to develop a multi-storied apartment consisting of 12 units of which 4 units were to be retained by the 3rd respondent while 8 units were to be given to the petitioner and her sister. The 3rd respondent later obtained completion certificate from the CMDA on 04.06.2014. 4. Before the completion certificate was obtained, the petit....

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.... 150% of the tax demanded was also confirmed under section 27 of the TN VAT Act, 2006. 8. Challenging the same, the petitioner submits that the petitioner is not a dealer and is therefore not liable to tax under the provisions of the TN VAT Act, 2006. It is further submitted that tax if any has to be demanded only by the 3rd respondent who has rendered the construction service involving works contract. The reasons for truncating the transfer of the built-up unit to sale of UDS and by way of construction agreement was on account of the fact that the 3rd respondent had not obtained completion certificate from the CMDA only on 04.06.2014, therefore a Tripartite Construction Agreement was registered on 09.04.2014. 9. It is further submitted t....

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.... to facilitate the prospective buyer to pay lesser stamp duty on the conveyance of immovable property. 13. Article 5(i) to the Schedule-I of the Stamp Act,1899 reads as under:- Article 5(i): If relating to construction of building One rupee for every hundred rupees or part thereof of the cost of the proposed construction or the value of construction or the consideration specified in the agreement whichever is higher. Explanation:- For the purpose of this clause, "building" includes any unit, residential, commercial, institutional, industrial or otherwise proposed to be constructed on an undivided share of land"; 14. The intention of the State Legislature was to levy and collect stamp duty at 1% was on the cost of the proposed construc....