Assessee allowed to take reimbursement of additional GST liability on contract/work order awarded in pre-GST regime

[CA Bimal Jain]

The Hon’ble Chhattisgarh High Court in M/S. GORDHANDAS GOBINDRAM VERSUS STATE OF CHHATTISGARH, ENGINEER-IN-CHIEF, PUBLIC WORKS DEPARTMENT, ATAL NAGAR, DIST. RAIPUR (CG) CHIEF ENGINEER, C.G.P.W.D. BRIDGE CONSTRUCTION ZONE RAIPUR, SUPERINTENDING ENGINEER, EXECUTIVE ENGINEER, C.G.P.W.D. DIVISION NO. -2, RAIPUR (CG) SUB-DIVISIONAL OFFICER, BILASPUR - 2022 (12) TMI 1232 - CHHATTISGARH HIGH COURT allowed the petition filed by the assessee to seek reimbursement of the additional tax liability on implementation of the Goods and Services Tax (“GST”) law for contracts and work orders which had been executed before the GST regime.

Facts:

This petition has been filed by M/s Gordhandas Gobindram (“the Petitioner”), who was awarded a contract/work order by the Public Works Department, Raipur (“the Respondent”) prior to the introduction of GST law. The Petitioner on account of the introduction of new GST law was required to pay certain additional tax liability, which the Petitioner now intends to get it refunded from the Respondent.

The Petitioner submitted that the Respondent itself has taken a policy decision vide order dated October 10, 2018 (“Impugned Order”) passed by the State Government to ensure the reimbursement of additional tax liability incurred by the contractors in respect of contracts, which were awarded prior to July 1, 2017 i.e. the date from which the GST law came into force.

Issue:

Whether the Petitioner is entitled to seek reimbursement of additional GST liability imposed after the introduction of GST law?

Held:

The Hon’ble Chhattisgarh High Court in M/S. GORDHANDAS GOBINDRAM VERSUS STATE OF CHHATTISGARH, ENGINEER-IN-CHIEF, PUBLIC WORKS DEPARTMENT, ATAL NAGAR, DIST. RAIPUR (CG) CHIEF ENGINEER, C.G.P.W.D. BRIDGE CONSTRUCTION ZONE RAIPUR, SUPERINTENDING ENGINEER, EXECUTIVE ENGINEER, C.G.P.W.D. DIVISION NO. -2, RAIPUR (CG) SUB-DIVISIONAL OFFICER, BILASPUR - 2022 (12) TMI 1232 - CHHATTISGARH HIGH COURT held as under:

• Relied on the judgment of the Hon’ble Chhattisgarh High Court in M/S D.A. ENTERPRISES THROUGH ITS PROPRIETOR DINESH KUMAR MISHRA VERSUS STATE OF CHHATTISGARH THROUGH THE SECRETARY; CHIEF ENGINEER HASDEO BASIN; SUPERINTENDING ENGINEER; EXECUTIVE ENGINEER MANIYARI - 2022 (12) TMI 1136 - CHHATTISGARH HIGH COURT  wherein under identical set of facts the Court allowed the petition.
• Permitted the Petitioner to approach the Respondent in terms of the Impugned Order.
• Directed the Petitioner to file a fresh claim and produce necessary proof of the additional tax liability incurred on account of the introduction of the GST law within a period of one week.
• Further directed the Respondent, to scrutinize Petitioner’s fresh claim and take a decision within a further period of 90 days.

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