TMI Blog2022 (11) TMI 1067X X X X Extracts X X X X X X X X Extracts X X X X ..... tor, Director General of GST Intelligence, Coimbatore, which has been adjudicated by the 5th Respondent and proposal was made demanding GST of Rs.5,11,38,438/- in terms of Section 74(1) of The Central Goods and Services Tax Act, 2017. As a matter of fact, the show cause notice also makes a reference to G.O(Ms)No.296, Finance (Salaries) Department, dated 09.10.2017, which has been issued by the Government of Tamil Nadu in support of the fact that GST ought to be paid by procuring entities while calling upon the Petitioner to discharge the applicable GST. In the meanwhile, the Petitioner was served with the notice by the 5th Respondent fixing dates for personal hearing, pursuant to the show cause notice. Two personal hearings have already bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... main contractors. He further submitted that the Petitioner was registered under erstwhile Value Added Tax within the State of Tamil Nadu and were also holders of Service Tax Registration till 30.06.2017. The Petitioner migrated to GST and was allotted GST registration. When GST was introduced, the Petitioner had ongoing contracts, i.e., works contracts were entered and works commenced prior to 01.07.2017 and continued after 01.07.2017. The details of which are given below: (i) Work for improvement to Junction Improvements, providing protective works, construction of culvert, widening culvert including Reconstruction of Minor Bridge in SH MDR, ODR in Thootukudi (H), C M Sub division Package 28 by the Divisional Engineer (H) C M (Fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tifications in G.O.(Ms)No.264, Finance (Salaries) Department, dated 15.09.2017 and G.O.(Ms)No.296, Finance (Salaries) Department, dated 09.10.2017, wherein, it has been held that liability under GST regime shall be borne by the procuring entity. The relevant portion is extracted hereunder: G.O.MS.264 was issued on 15.09.2017 which provided that : - Since introduction of GST is a major change in taxation law, the government has taken a policy decision that the risk on account of change of tax law in Government works contract due to introduction of GST shall be borne by the procuring entity. The government therefore will notify detailed guidelines for evaluating net change in tax liability on contracts for the purpose of payments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... racted value is less than the bid value, the tax quoted shall be proportionately reduced to arrive at the estimate of value of subsumed tax. - In case, break up of taxes was not obtained or furnished in the bid document, the supplier may be asked to furnish the break up of taxes with in the contracted amount with details and explanations. - The estimate of subsumed tax should also be worked out independently from the departmental estimates. Revises schedule of rates showing basic price and tax components separately are being issued by the public works department. Using the revised SOR, revised departmental estimates for the work without subsumed tax shall be arrived as per normal procedure. The difference between the departmental ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Petitioner requested the GST authorities not to initiate the proceedings until the disposal of the representation. 5. In the circumstances, this Court is of the view that the Respondents 1 to 4 shall consider the representation of the Petitioner dated 12.08.2022, on its own merits and pass appropriate orders in accordance with law, within a period of four weeks from today. It is also open to the Petitioner to submit before the GST authorities seeking further time in view of the pendency of the representation. If such request is made, the adjudicating authority shall dispose of the same taking into account the pendency of representation before the Respondents 1 to 4. It is made clear that this Court has not expressed any view with reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
