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The subject matter of challenge in the present writ application is to the Entry No.3(if) of the Notification No.11/2017, petitioner argued that the impugned entry referred to above in the notification is ultra vires section 7(2) of the GST read with Entry No.5 of the Schedule-III to the GST Act.

Entry no. 3(if) of the Notification No. 11/2017- Value of Land –-- The applicant challenged the Entry No.3(if) of the Notification No.11/217 -Central Tax (Rate) dated 28th June, 2017 read with Para-2 of the said notification. The applicant has entered into an agreement with a developer, the fourth respondent for purchase of plot of land. The said agreement also encompasses construction of a bungalow by the respondent. Separate consideration was agreed upon between the parties to the agreement, i.e. (i) sale of land and (ii) construction of bungalow on the land. The applicant is liable to pay tax at the rate of 18% GST on the entire consideration payable for land as well as construction of bungalow after payment of 1/3rd value towards the land. The respondent has raised an invoice on the applicant to collect an amount of Rs. 42 Lakh towards the tax. Only 1/3rd of the total consideration has been deemed to be the value of the land as per the impugned notification. The applicant submitted that the impugned entry is ultra vires section 7(2) read with Entry No.5 of the Schedule-III to the Act. Held that:- The Hon’ble High Court issued notice to the respondents, returnable on 10th February, 2021. Further, permitted the applicant to deposit the amount of tax as raised under the invoice without prejudice to his rights and contentions as raised in this writ application