Case law, Tamil Nadu land law
Appeal No. 48 of 2023, M. Shankar and C.S. Brindha v. M/s. Casa Grande Shelter LLP
The Tamil Nadu Real Estate Appellate Tribunal delivered its order in Appeal No. 48 of 2023 on 21 August 2023, dismissing an appeal by two allottees against M/s. Casa Grande Shelter LLP. The Tribunal upheld the refusal to refund Rs.5,31,412 claimed as excess Goods and Services Tax and Rs.11,000 collected for generator use.
What the case concerns
The Tamil Nadu Real Estate Appellate Tribunal considered claims by M. Shankar and C.S. Brindha, allottees in the Casa Grand-Asta project promoted by M/s. Casa Grande Shelter LLP. The allottees had initially booked Flat No. F-109 and were later allotted Flat No. D-103, which they took possession of during December 2020.
The appeal challenged only two parts of the Tamil Nadu Real Estate Regulatory Authority decision in CCP No. 163/2021 dated 16 December 2022:
- Refusal to refund Rs.5,31,412 allegedly collected as excess Goods and Services Tax.
- Refusal to refund Rs.11,000 collected for generator use.
Goods and Services Tax claim
The allottees argued that the promoter had charged Goods and Services Tax at 12 percent instead of 5 percent and should refund the 7 percent difference.
The promoter stated that it had exercised a one-time option arising from the Goods and Services Tax Council meeting held on 19 March 2019 to continue paying tax at the old rate of 12 percent. The promoter produced an option letter dated 8 May 2019, marked as Exhibit B2 before the Tamil Nadu Real Estate Regulatory Authority.
The Tamil Nadu Real Estate Appellate Tribunal found that the option letter established that the applicable rate for the promoter was 12 percent. It therefore held that the tax had been correctly collected and that no refund was due.
Generator charge claim
The promoter supplied electricity through generators from December 2020 to March 2021, until an electricity board connection was provided. It collected Rs.11,000 from the allottees towards generator maintenance for four months.
The Tamil Nadu Real Estate Appellate Tribunal found that the allottees had used the generator and the electricity produced. It held that they could not expect electricity to be supplied free of cost and upheld the refusal to reimburse the charge.
Outcome and effect
Appeal No. 48 of 2023 was dismissed. The Tamil Nadu Real Estate Appellate Tribunal found no ground to interfere with the earlier decision refusing the two refunds. The appeal did not challenge the other reliefs addressed in the original complaint, including delayed possession interest and repayment of preferred location charges.
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Common questions
Did the allottees receive a refund for the alleged excess Goods and Services Tax?
No. The Tamil Nadu Real Estate Appellate Tribunal held that the promoter had validly exercised an option to pay and collect Goods and Services Tax at 12 percent, so nothing was refundable.
Was the Rs.11,000 generator charge ordered to be repaid?
No. The Tribunal found that the allottees had used the generator-supplied electricity for four months and upheld the refusal to reimburse the charge.
Did the appeal deal with compensation for delayed possession?
No. The appeal challenged only the refusal of the alleged excess Goods and Services Tax refund and the generator charge refund.
What was the final result of Appeal No. 48 of 2023?
The Tamil Nadu Real Estate Appellate Tribunal dismissed the appeal and declined to interfere with the Tamil Nadu Real Estate Regulatory Authority decision.
