TaxTMI 
TaxTMI 
TaxTMI 
2021 (6) TMI 1093
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....ter referred to as the" Appellant") against the Advance Ruling No. HAR/HAAR/R/2018-19/26 dated 22.11.2018. A copy of order dated 22.11.2018 of the Advance Ruling Authority was received from the appellant on 04.03.2020 and the appeal has been filed on 29.06.2020 which is within time in terms of COVID Extension granted vide Notification 35/2020-C.T. dated 3.04.2020 issued under Section 168A of the CGST Act 2017. Brief facts of the case: The Appellant M/s. Ashiana Housing Ltd. is registered under GST in Gurugram and is a State administered taxpayer. They are engaged in the construction of residential complexes and have entered into a 'development agreement' with a Landowner M/s. Universe Heights (India) Private Limited Gurugram for ....
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....ed the impugned order wherein the authority ruled, "The amount of statutory charges i.e. External Development Charges and Infrastructure Development Charges, recovered by the Applicant from buyers and paid further to respective Government Authorities will form part of value of taxable supplies being made by the Applicant". Being aggrieved with the impugned order the appellant M/s Ashiana Housing Ltd. had filed the present appeal. Pleadings of the Appellant: The Appellant has cited the following as the 2grounds for preferring of present appeal:- A. The impugned order has been passed in gross contravention of statutory provisions and principles of natural justice. B. The amount of EDC and IDC shall not be included in value of supply ....
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.... UTGST Act and the GST (Compensation to States) Act, if charged separately by the Supplier. These taxes, duties, cesses, fees and charges are those, which are levied on the underlying transaction, i.e. supply of deemed construction services by the supplier. These do not refer to each and every charge, which is incidentally related with supply of services. It has to be read as to mean only those which are levied on the supply of services. In the instant case, the EDC and IDC are not levied on the transaction of supply of services. These charges are mandatorily recovered from a developer holding license under HDRUA Act as a condition of the license. Thus, these charges are not covered with the purview of Section 15(2)(a of the CGST Act. The ....
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.... any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier; The Appellant is not pleading that these charges are under CGST Act, but are payable in terms of the HDRUA ACT. His plea is on the analogy that the User Development Fee' (UDF) charged from the passengers under the 'Build Own Operate Transfer (BOOT) Scheme be excluded from the Assessable Value as the CESTAT's Final Order A/30739/2019 Dated 16.09.2019 in the case of GMR Hyderabad International Airport Ltd. v Commissioner wherein the Hon'ble CESTAT has held that the User Development Fee&#....
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....lant. The applicant has also relied upon the Hon'ble Supreme Court's decision in the matter of Commissioner vs. Super Synotex (India) Ltd, 2014 (301) ELT 273 (SC) has been incorrectly relied by the Appellant. In this case Hon'ble Apex Court has held that Value Added Tax (VAT) is not added to the taxable Value. In GST era concept of SGST/ CGST/ IGST has replaced the VAT. Using the corollary, while arriving at the taxable value, the SGST/CGST/IGST is not added to the Value. In fact same is set-off with input credit of IGST/CGST/SGST along the supply chain to avoid the cascading effect of tax. It is thus clear that the decision relied upon by the Applicant is not applicable to the facts of the case. Any statutory charges have been....
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....spect of an individual infrastructure project viz. a colony, and the cost on developing infrastructure projects development in the State. As per the Act, it is charged 'per square metres of the gross area and of the covered area of all the floors in case of flats proposed to be developed by him into a colony'. Further it is to be paid 'in two equal installments. The first installment shall be deposited within 60 days from the date of the grant of the license and the second installment to be deposited within six months from the date of grant of license'. It is not related to the sale of the flats. Similarly for the EDC the Licensee has 'to pay proportionate development charges if the external development works as define....