Defendant’s urban development1) The Defendant is designated as an urban development zone and approved by the Mayor of Seoul Special Metropolitan City as a B urban development zone development project (hereinafter “instant project”).

In the instant project district, the part supplied for the construction of “national housing” as stipulated in Article 2 subparag. 3 of the Housing Act was included in the housing construction site supplied by the Defendant for compensation. (2) The Seoul Special Metropolitan City, upon reviewing the actual status of the payment of value-added tax on the national housing construction service project implemented by the Defendant, means the case where “the area used only for the residential purpose is less than 85 square meters per house or household” in the national housing project district.

(See Article 2 subparag. 3 of the Housing Act). In the case of the construction of a national housing and a collective housing of a large scale exceeding the national housing, “value-added tax equivalent to the percentage of the total supply area of the national housing construction site in the total supply area of the value-added tax on all construction services” was determined to be exempted, and around August 2007, the Defendant ordered the Defendant to withdraw the reduction of construction price through design change with the contractor in relation to the national housing construction project for which no value-added tax is yet paid

According to the above instructions, the defendant set the basis for calculating the value-added tax on public housing in a way that deducts the ratio of the area of the site for national housing construction from the value-added tax on the total value of supply when housing below national housing scale and excess housing are mixed.

B. The Plaintiff and D who operated the 1C of the contract.