TMI Blog2022 (4) TMI 1524X X X X Extracts X X X X X X X X Extracts X X X X ..... - applicability of N/N. 11/2017- Central Tax (Rate) dated 28.06.2017, as amended by notification No. 03/2022-Central Tax (Rate) dated 13.07.2022 - Seeking refund of 6% of additional GST paid by them for the contract executed prior to 18.07.2022 - HELD THAT:- The documents submitted by the petitioners in the present writ petitions postulate that some of the departments of the State Government of Chhattisgarh have accepted such claim of the contractors where certain additional burden of money was incurred upon them after coming into force of the GST. This 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 E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... involve similar question of fact and law as well, they were clubbed together, heard together and are being disposed of by a common order. 2. The present batch of writ petitions have been preferred by the petitioners seeking a declaration that notification No. 11/2017- Central Tax (Rate) dated 28.06.2017, as amended by notification No. 03/2022-Central Tax (Rate) dated 13.07.2022 prescribing the rate of GST at 18% for works contract services, be declared inapplicable for the contracts which have been executed prior to 18.07.2022 and further the petitioners be declared entitled for refund of 6% of additional GST paid by them for the contract executed prior to 18.07.2022 from the respondent authorities on submission of valid proof thereof. 3. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the petitioners and other contractors at the time of submission of their bids submitted their offer/bid on the basis of GST liability @ 12% existing at the time of bid and calculated their bid price on the basis of applicable GST rate of 12%, but in present cases, the increase rate of GST is being made applicable retrospectively despite contracts executed before 18.07.2022 without any refund or reimbursement mechanism, which is impermissible in the eyes of law. Learned Senior counsel further submits that some departments of the Government of Chhattisgarh have already recommended for providing reimbursement to the contractors of the increased GST liability of 6%, but the PWD Department has not issued any order till date for reimbursement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and have no legal baking to support it. The stand taken by the petitioners that the State Government vide circular dated 02.08.2018 has decided to reimbursement the amount tax is not at all justified, as the State Government has only decided to reimburse those differential amounts, which have been incurred by the contractor on count of new tax for those contracts which have been executed prior to coming of GST. This circular is not going to help the petitioners for the reason that the petitioners terms and conditions of contract more specifically Clause 7.2 itself restricts the grant of benefit to any increased or deceased in the rate of tax and until and unless that agreement itself is changed by the Department as well as by the contractor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ursement of the additional tax liability from all other Departments except for one, thus it would be arbitrary and discriminatory. If the Government has taken a decision to protect the interest of the Contractor in the light of introduction of new tax law, it ought to have been uniformly made applicable to all the Departments to the State Government and it could not have been made applicable Departments wise without any sufficient cogent reasons. It would have been more reasonable and fair on the part of the State Government, if they would have issued one common Order for all the Department instead of passing orders Department wise taking into consideration the fact that the issue is of Policy matter rather than an individual dispute of a C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment of Chhattisgarh have accepted such claim of the contractors where certain additional burden of money was incurred upon them after coming into force of the GST. In the similar nature of case, this Court vide order dated 17.11.2022 passed in WPT No. 94/2020 directed the petitioner therein to make a fresh claim showing the difference of tax liability that was incurred at the time of submission of bids and the excess tax paid by him in the light of the introduction of the GST and upon such claim being made, the respondents were directed to forthwith process the same and after due scrutiny and enquiry, the petitioner therein be suitably reimbursed the additional tax burden incurred by him. Thus, keeping in view the fact that present cases ..... X X X X Extracts X X X X X X X X Extracts X X X X
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