IRAVANSHI BUILDERS AND DEVELOPERS Vs. COMMISSIONER

JUDGEMENT

(1.) AN application under section 57 of the Uttarakhand Value Added Tax Act, 2005 was filed before the Commissioner to seek an opinion, whether the activities, with which the revisionist is involved, would attract or not attract the provisions of the Uttarakhand Value Added Tax Act, 2005. In the application, it was held out that the business carried on by the revisionist is development of residential complexes. It was held out that the land, upon which, such residential complexes would be constructed belongs to it; it has obtained necessary sanction to construct thereon and that it proposes to sell the constructed area. The Commissioner felt that the said activity is covered by sub -section (55) of section 2 of the Uttarakhand Value Added Tax Act, 2005 and, accordingly, opined that such activity would attract the provisions of the Uttarakhand Value Added Tax Act, 2005. The appellate authority has confirmed the said finding of the Commissioner. Hence, this revision. Sub -section (1) of section 3 of the Act provides as follows:

(2.) THEREFORE , no sooner a sale is effected, the provisions of the Act will become applicable and, accordingly, tax will be levied. Sale has been defined in sub -section (40) of section 2 of the Act, which clearly mentions that sale means any transfer of property in goods. Apropos that, one has to take into account the provisions contained in sub -section (55) of section 2 of the Act, which provides as follows:

(3.) THEREFORE , with the clarification as above, we remit back the matter to the Commissioner, who shall find out, what is the object of the business of the revisionist, i.e., whether it is engaged in sale of immovable properties in the form of flats, apartments, etc., or it is undertaking construction of flats, apartments, etc., on behalf of others, and decide the issue on the basis of the law declared as above. With the observation as above, the revision petition is disposed of.