TMI Blog2022 (12) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... tional tax liability that has occurred because of the introduction of any new tax. The bid and the price quoted therein by the Contractor always is taking into consideration the existing taxes and for which he is liable to pay and deposit. In case of additional liability incurred on account of the imposition of a new tax, the Department has to have a mechanism of compensating the Contractor to the extent of the additional tax liability that the Contractor had to bare - It goes without saying that this aspect has been fairly appreciated by the Government itself and had taken a decision of reimbursing the additional tax burden to the Contractors when they had issued Orders for the various Departments under the State Government like: PWD, Chhattisgarh Rural and Development Agency and Chhattisgarh Urban Administration and Development Department and subsequently now vide the order dated 30.09.2022 in the Water Resource Department as well. The impugned therefore deserves to be and is accordingly set aside / quashed - Petition disposed off. - WPT No. 94 of 2020 - - - Dated:- 17-11-2022 - Hon'ble Shri Justice P. Sam Koshy For the Petitioner : Mr. Prafull N. Bharat, Sr. Advo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 26.09.2019. The relevant portion of this order dated 26.09.2019 is reproduced here-in-under:- 17. GST shall be applicable as per Govt, of India govt. of C.G. Amount of GST not included in BOQ. GST as applicable time to time will be paid to the Contractor during payment of running/final bills as rate quoted by Contractor. 8. There was a similar order issued under the Urban Administration Department on 21.12.2017 (Annexure P/14), wherein also the Government had passed an order of similar nature Annexure P/14 of the said writ petition, which for ready reference is being reproduced here-in-under:- कर्य विभाग मैन्यूअल के एपेन्डिक्स 2.1 के क्लॉज क्रमांक 7.2 टैक्सेस में निम्नानुसार प्रावधान है :- The rate quoted by the Contractor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r shall be inclusive of royalties, all direct and indirect taxes of central and state governments i.e. GST (Goods and Services Tax), income tax and cess and local taxes as applicable. The Contractor shall have to pay all applicable taxes and cess for the performance of his contract. The government shall deduct such taxes at source as per applicable law. If any New Tax (not increase of decrease in existing taxes, duties, royalties, cess and surcharge etc.) is levied on the Contractor, the Engineer in charge shall reimburse the amount of such New Tax on submission of proof of such payments of tax by the Contractor. 2.17.1 The Financial bid offered by the Contractor shall be deemed to be inclusive of all Central and State Government' taxes, other levies, duties, royalties, cess, tolls, taxes of Local Bodies and Authorities, including GST (Goods and Service Tax), that the Contractor shall have to pay for the performance of his Contract. The Governments will perform such duties in regard to the deduction of such taxes at source as per applicable law. The Contractor there upon necessarily and properly pay all the taxes/ levies/ cess/ royalties/ GST, as per la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to the extent of the additional tax liability that the Contractor had to bare. 14. It goes without saying that this aspect has been fairly appreciated by the Government itself and had taken a decision of reimbursing the additional tax burden to the Contractors when they had issued Orders for the various Departments under the State Government like: PWD, Chhattisgarh Rural and Development Agency and Chhattisgarh Urban Administration and Development Department and subsequently now vide the order dated 30.09.2022 in the Water Resource Department as well. 15. It is also relevant to take note of the submission made by the Counsel for the petitioner, when in the earlier around of litigation the writ petition preferred by the petitioner was disposed of in the light of another order of similar nature passed in WP(C) No. 460 of 2020 in the case of M/s Manish Pipes Pvt. Ltd. Vs. State of Chhattisgarh and Ors. The said writ petition was in-respect-of a contract, under the Public Heath Engineering Department. Upon a representation made by the said M/s Manish Pipes Pvt. Ltd. to the Department, the State Government has accepted his claim and has reimbursed the said contractor of the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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