TaxTMI 
TaxTMI 
2025 (6) TMI 517
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....25 Hon'ble Mr. Justice D. Bharatha Chakravarthy For the Petitioner : Mr. K. Suresh Kumar, (in W.P.No.33993 of 2024), Mr. T.N. Rajagopalan, (in W.P.No.4203 of 2025) And Mr. K. S. Viswanathan, Senior Counsel, for M/s. T. Hemalatha (in remaining W.Ps) For the Respondents : Mr. R. Viduthalai, Senior Counsel for Mr. D. Veerasekaran, Standing Counsel (TNHB) (in all W.Ps) COMMON ORDER Since all these Writ Petitions are for identical grievances and are interconnected, they are addressed collectively and resolved through this common order. 2. The brief factual background leading to the filing of these Writ Petitions is that the Tamil Nadu Housing Board (hereinafter referred to as 'TNHB') is a body corporate, created and incorporated by the Tamil Nadu Housing Board Act, 1961. It is fully owned, sponsored, and operated by the State of Tamil Nadu. It engages in the formation of housing projects under various schemes throughout Tamil Nadu. These Writ Petitions concern the development of land through a Real Estate Project into residential flats within the city of Chennai, specifically (i) in Nandanam division and (ii) in Anna Nagar Division. It suffices to state tha....
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....uct 72 high-income group flats. The planning approval was obtained on 01.02.2021 and the project was registered and approved with RERA on 23.02.2021. On 18.08.2021, an advertisement was published in all the leading newspapers concerning the project, setting the cost at Rs. 10,500/- per Sq.ft and specifically stating it as inclusive of G.S.T. Similarly, the petitioners applied and by following a similar procedure, have now paid the entire original sale consideration that was agreed upon and notices were issued requesting them to pay the 5% of the total sale consideration as G.S.T. It is noted that out of the 72 units, 60 persons have already paid the 5% G.S.T, and only 11 are before this Court. Among these 11 individuals, 8 have already made payments without prejudice to their rights in the Writ Petition. Sale deeds were also executed for 24 purchasers. The simple case of the petitioners is that when TNHB holds out, through clear and categorical advertisements and notices, that the cost fixed per square foot is inclusive of G.S.T, they are thereafter estopped from claiming G.S.T additionally. 6. The Writ Petition is resisted by the respondents through the filing of a counter-affi....
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....al Selling Price already appd pricing meeting dt 30.07.2020 / Now 14403000 14187000 15078000 13620000 13972000 13992000 14 Covered Car parking cost @ Rs.1,50,000/- 1 parking space 150000 150000 150000 150000 150000 150000 15 Final Selling Price (including coverd Car Parking) 14553000 14337000 15228000 13770000 14122000 14142000 16 Final Selling Price already appd pricing meeting dt 30.07.2020 / Now recommended 14554000 14338000 15229000 13770000 14122000 14143000 17 rate per sq.ft 9887 9888 9883 9892 9889 9890 19 GST 5% for service 727700 716909 761450 688500 706100 707150 20 Final selling price including GST 5% 15281700 15054990 15990450 14458500 14828100 14850150 21 After adding GST rate per sq.ft 10382 10383 10377 10387 10384 10385 7. Furthermore, the cost breakdown under various categories is also filed before this Court and is extracted hereunder: Thus, they argue that when the cost was originally calculated for the construction works contract outsourced to third parties, the 12% G.S.T wa....
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....nd public interest requires, the principle of promissory estoppel or estoppel shall give way. Therefore, this is not a circumstance in which TNHB should be knocked down to its original price and be restrained from calculating and demanding the 5% G.S.T, which is a lawful due to the State to be borne only by the purchasers. 11. Heard Mr.K.Suresh Kumar, learned Counsel for the petitioner in W.P.No.33993 of 2024; Mr.T.N.Rajagopalan, learned Counsel for the petitioner in W.P.No. 4203 of 2025; Mr.K.S.Viswanathan, learned Senior Counsel for the petitioners in the remaining Writ Petitions; Mr.R.Viduthalai, learned Senior Counsel, assisted by Mr.D.Veerasekaran, learned Standing Counsel (TNHB) for the respondents, who reiterated the above submissions in detail and also relied upon certain judgments. The arguments overlap. It suffices to mention that they reiterated the contentions mentioned above, in addition to making further submissions on the G.S.T. issue. 12. I have considered the rival submissions in detail. 13. The first contention of the learned Senior Counsel for the Housing Board that the non-joinder of the authorities under the G.S.T Act is fatal to the Writ Petition cann....
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....cannot renegotiate or backtrack from the promises made. In this regard, the following portion of the judgment of the Division Bench (in which I am also a party) in Chennai Hiranandani Residents Welfare Association Vs. The Secretary, Housing and Urban Development Department and Ors. in W.A.No.3328 of 2023 by the order dated 08.04.2024 is relevant and should be extracted as follows:- "6.27. Section 3 of the Indian Contract Act, 1872 which defines consent is as follows :- " 3. Communication, acceptance and revocation of proposals.-The communication of proposals, the acceptance of proposals, and the revocation of proposals and acceptances, respectively, are deemed to be made by any act or omission of the party proposing, accepting or revoking by which he intends to communicate such proposal, acceptance or revocation, or which has the effect of communicating it." Therefore, at the relevant point in time, when it was expressly held out that there would be 6 + 7 residential towers only, it cannot be said that the allottees of the flat have acceded to or consented that the promoter is allowed to put any number of towers or to do away with the clubhouse and commer....
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....sought to be collected is 5% of the sale consideration. Already, 9% of the sale consideration is added as profit; therefore, even if there is any G.S.T, that is left out, that will only reduce the profit of TNHB to 4%. Thus, the argument relating to overriding public interest to wriggle out of the contractual obligation cannot be countenanced. 19. Furthermore, a review of the saleable and economic standards, i.e., filed by TNHB, reveals the following: (i) For instance, in Type-I 9 flats (as per statement filed in page No.158 of the typed set of papers on behalf of TNHB) the advertised price includes the land cost at the rate of Rs. 11,000/- per Sq.ft, totalling Rs. 62,26,000/-. Additionally, the project period interest for the land cost at a rate of 8.5% is also charged, totalling Rs. 7,93,815/-. Thus, the total land cost amounts to Rs. 70,19,815/-. (ii) The construction cost includes the construction and additional development cost at the rate of Rs. 4,113/- per Sq.ft., amounting to Rs. 64,89,761/-. Subsequently, since the Housing Board engages external contractors for building and construction, 18% GST is added, equating to Rs. 740/- per Sq.ft., totalling Rs.....
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....ce to the claim made by GST authorities. In fact, even if any further benefit accrues to TNHB due to its litigation or claim with the G.S.T authorities, nothing further needs to be refunded to the petitioners herein. Therefore, for the petitioners who have already paid the full flat cost, TNHB is not entitled to claim any additional amount, and the sale deed must be executed. For the petitioners who have, without prejudice, also paid the additional 5%, the extra sum collected from them must be refunded. Accordingly, the necessary sale deeds shall be executed in favour of the petitioners. 22. In view thereof, these Writ Petitions are allowed on the following terms:- (i) In respect of the petitioners herein who have paid the 100% sale price as calculated according to the advertisement rate, TNHB, without insisting on any further payment of G.S.T, shall appropriately calculate the sale price and the G.S.T, and by mentioning the sale price, shall execute the sale deed in favour of the petitioners; (ii) Regarding the petitioners who have, without prejudice, also made the additional payment, the aforementioned exercise shall be conducted in addition to refunding the ....