GST
TRT-2025-
AAR Tamilnadu
Date:-31-08-22
In:-
Issue Favourable to Tax Payer ?:-
Date of order: 31.08.2022
Facts:
- The applicant, Tvl. VGK Property Developers Private Limited in the business of maintenance of the immovable property.
- The fact is that the carpet area is not more than 90 square meters and the price is Rs. 45 lakhs, will be treated as affordable residential apartments based on their location within the revenue district of Kanchipuram, which is independent and outside the jurisdiction of the revenue district of Chennai and therefore treated as a "non-metropolitan city" as per page 2 of Notification No. 12 No. 11.2017 - Central Tax (Rate), dated 28.06.2017 r/w Notification 3/2019 CT(Rate).
- The State Judicial Authority having administrative jurisdiction over the petitioner vide its letter Re.No.411/2022/A4 dated 29.04.2022 submitted that the project area mentioned by the petitioner comes under Tambaram Corporation as well as CMDA. The approved area is therefore not suitable for affordable residential apartments.
Issue:
- Whether the Notification No. 03/2019 - Amended by Central Tax (Rates) Notification 11/2017 - whether an unappealing project falls within the purview of a "Non-Metropolitan City" as defined in Central Tax (Rates).
Order:
- The authorities observed that Sembakkam Municipality is the 'appropriate local body' for issuing orders for the administration of building plans, the Chennai Metropolitan Development Authority (CMDA) collects certain fees for 'development business. So, to begin.
- CMDA for Restricted Projects and Check Extension is through CMDA Regulation, Metropolitan City Area of within Restricted Projects.
- The authorities stated that the units in the impugned Project are NOT considered as located in a city or town “other than Metropolitan Cities” in terms of Notification No. 11/2017 - Central Tax (Rate), dated 28.06.2017 r/w Notification 3/2019 CT(Rate).
- The authorities have ruled that the units in the impugned Project are within the Chennai Metropolitan area and hence the same cannot be considered as located in a city or town "other than Metropolitan Cities” in terms of Notification No. 11/2017 - Central Tax (Rate), dated 28.06.2017 r/w Notification 3/2019 CT(Rate).
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