N.BALA BASKAR Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, who entered into an agreement with the fifth respondent herein for the joint development of a property owned by him and his brother and sisters, has come up with the above writ petition seeking a declaration that circular No.151/2/2012 dated 10.2.2012 issued by the Central Board of Excise and Customs and the recommendations made by the Tax Research Unit of the Ministry of Finance on 20.1.2016 are unconstitutional and ultra vires the powers of the Parliament under Article 246(3) read with Entry 49 of List II of the Seventh Schedule and the Finance Act, 1994.

(2.) Heard Mr.B.N.Suchindran, learned counsel appearing for the petitioner. Mr.A.P.Srinivas, learned Senior Panel Counsel takes notice for the respondents 1 to 4. Mr.G.Natarajan, learned counsel appears for the fifth respondent.

(3.) As stated earlier, an agreement tiled 'agreement for development' was entered into on 20.2.2013 between the writ petitioner, his brothers and two sisters on the one hand and the fifth respondent herein on the other hand, for the purpose of developing the land owned by the petitioner and his siblings into a complex of residential houses. Under the said agreement, the fifth respondent was obliged to construct a super built up area of 15,600 sq.ft., and hand over 65% of such constructed super built up area to the petitioner and his siblings. The fifth respondent was entitled to the remaining 35% of the super built up area. In consideration of the fifth respondent putting up and handing over 65% of such constructed area to the petitioner and his siblings, they have agreed to convey to the fifth respondent or to his nominees 35% of the undivided share of the land.