Section 62 of the CGST Act, 2017— Assessment Orders —-- The petitioner a Company engaged in property development had launched a residential township project. The SCNs were issued on alleged short payment of output tax qua supply of construction services. It is alleged that in the case of supply of construction services involving the transfer of property in land or undivided interest in land, as the case may be, the value of supply services and goods shall be equivalent to the total amount charged for such supply less the value of land or undivided share of land, as the case may be. The value of land or undivided share of land shall, in such circumstances be deemed to be the development charges. The court observed that the methodology set out under the Notification as relatable to construction services, is for bifurcation of the total consideration by way of a deeming fiction, to arrive at the deemed amount attributable to construction services and land costs. The deeming fiction would not apply in cases where the assessee is in a position to supply the actual amount of the consideration received towards construction services and land cost. The Standing Counsel submitted that such particulars do not appear to have been actually produced before the authority. The court observed that the position taken by the authority on merits is not the correct view.

Held that:- The Hon’ble High Court set aside the assessment orders. Further, returns have been filed by the petitioners and in accordance to Notification No.6 of 2023 dated 31.03.2023, if returns were filed on or before 30.06.2023, orders of assessment passed under Section 62(1) shall be deemed to have been withdrawn. The court directed the petitioner to appear before the respondent on 05.05.2023 with all records in support of its turnover. The orders of assessment shall be passed denovo within a period of four weeks.