OASIS REALTY Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) The present Appeal challenges an Order dtd. 20/10/2021 passed by the Maharashtra Sales Tax Tribunal ("the Tribunal") in VAT Second Appeal No.240 of 2020 filed by the Appellant for the period 1/4/2013 to 31/3/2014.

(2.) The Appellant is an association of persons. The Appellant is registered under the Maharashtra Value Added Tax Act, 2002 ("the MVAT Act") and Central Sales Tax Act, 1956 ("the CST Act"). The Appellant is engaged in the business of construction, development and sale of immovable properties, i.e., flats and dwellings, in the State of Maharashtra. As part of its business, the Appellant has constructed various apartments / buildings / flats and transferred the same under written agreements to buyers along with the underlying land or the interest in such land.

(3.) For the purpose of payment of VAT towards the aforesaid construction activity, the Appellant opted for the Scheme of Composition notified by Respondent No.2 under Sec. 42(3A) of the MVAT Act vide Notification No.VAT 1510/CR-65/Taxation 1 dtd. 9/7/2010. The said Scheme was opted for by the Appellant for agreements in respect of sale of flats which were registered during the year 2013-14 and was to be the basis on which the Appellant was to pay VAT in respect of construction of such flats. The Scheme as notified by the said Notification dtd. 9/7/2010 reads as under: In exercise of the powers conferred by sub-sec. (3A) of Sec. 42 of the Maharashtra Value added Tax Act, 2002 (Mah.IX of 2005), the Government of Maharashtra hereby, provide a scheme of Composition for the registered dealers specified in column (1) of the following schedule, who undertakes the construction of flats, dwellings or buildings or premises and transfer them in pursuance of an agreement alongwith land or interest underlying the land and prescribes the rate of tax specified in column (2) of the said Schedule by way of composition, in lieu the amount of tax payable on the transfer of goods whether as goods or in some other form, in the execution of such works contract by such registered dealer under the Act, subject to the conditions and restrictions specified in column (3) of the said schedule.