2020 (10) TMI 762 - HC - GST

Levy of GST on Works Contract awarded under the VAT regime - Petitioner has preferred a representation being aggrieved vide the representation dated 31.08.2018 before the respondent No. 4 i.e. the Chief Engineer PWD(Roads). However the same has remained un-attended to. HELD THAT - Issue Notice returnable by 3(three) weeks - the petitioner is permitted to serve extra copies on the counsel for the respondents within 1(one) week from today. It is submitted by Mr. Choudhury learned standing counsel that similar matters are fixed after 3(three) weeks and this matter may also be directed to be listed along with these matters. List this matter along with WP(C)8628/2019 WP(C)7169/2018 WP(C)3694/2019 WP(C)7571/2019 and WP(C)9052/2019 for further order.

Summary

Issues:
1. Imposition of 12% GST on works contract executed under the VAT regime.
2. Non-attendance to the representation by the Chief Engineer PWD(Roads).
3. Prayer for appropriate direction and order from the Court.

Analysis:
1. The petitioner, a registered Class 1A contractor under PWD(Roads Division), was awarded a contract in response to an NIT floated by the Chief Engineer PWD(Roads). An agreement was executed between the petitioner and respondent departments, directing the petitioner to proceed with the work. However, the imposition of 12% GST on the works contract, which was originally awarded under the VAT regime, is contested by the petitioner as contrary to law. The petitioner submitted bills totaling &8377;2,64,15,484, out of which &8377;2,18,87,515 was received, with &8377;26,26,501 being deducted as GST. The petitioner's representation to the Chief Engineer PWD(Roads regarding this issue remained unattended, leading to the filing of the writ petition seeking appropriate direction and order from the Court.

2. Notice was issued returnable by three weeks, with the learned standing counsel appearing on behalf of all respondents and accepting the notice. As the standing counsel has appeared, no fresh notice was deemed necessary. The petitioner was permitted to serve extra copies on the counsel for the respondents within one week. It was noted that similar matters were scheduled after three weeks, and the present matter was directed to be listed along with those cases for further orders.

3. The Court listed the matter along with other related cases for further order, with the prayer for interim relief to be considered on the next returnable date. The petitioner's request for appropriate direction and order from the Court regarding the imposition of GST on the works contract executed under the VAT regime remains pending for further judicial consideration. The legal proceedings are set to progress in conjunction with similar matters, ensuring a comprehensive review of the issue at hand.