9911796707
TMI Blog2024 (6) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... account of Board resolution of TNSCB dated 07.06.2019 in accordance with agreement dated 19.10.2017. 2. The case of the petitioner is that in order to construct 2112 tenements under vertical-III (AHP) of Pradhan Mantri Awas Yojna (PMYA) housing for all urban scheme, floated a tender on 22.06.2017 inviting bid. The petitioner bid for the said project and the petitioner's bid was accepted and approved by the respondent. After accepting the bid, the petitioner was called for negotiation of the tender in the meeting dated 18.08.2017. After negotiation on 27.09.2017, the respondent accepted the rates quoted by the petitioners at Rs. 179,69,05,781/- and directed the petitioner to enter into the written agreement between the parties. Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after called as "RFS"). By way of reply, the petitioner pointed out that they were acting in accordance with the terms of the agreement and requested to reimburse the GST amount. Even after RFS report, the petitioner was not settled with any amount. While being so, the respondent raised query as to why the government order passed in G.O.Ms.No.296 of 2017 Finance (Salaries) Department, dated 09.10.2017, cannot be applied to the project with respect to ascertain the value of subsumed taxes, which will in turn lead to finding of value of supply on which amount GST was paid. 4.1. He further submitted that ever since GST was implemented, the contract had been finalized prior to GST coming into force, the government of Tamil Nadu issued two gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est the bonafide of the petitioner whether he had paid GST or not. Further, a declaration under Section 16 of the GST Act, is mandatory to test the bonafide of the petitioner whether he has paid GST or not. The agreement dated 19.10.2017 had contained an arbitration clause. 6. Heard the learned counsel appearing on either side and perused the materials placed before this Court. 7. As per the tender document in condition No.31.0, bid quoted shall be for finished work in site and inclusive of all incidental and contingent charges. All taxes such as GST, seigniorage, cess, royalties, service tax etc., in respect of materials to be used on the work must be borne by the contractor. The quoted rate shall be inclusive of all taxes, duties and le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded in the rates wherever applicable and shall be paid by the contractor. 10. Now all the taxes are consolidated as GST and only one tax is available. Therefore, the scope of contract is inclusive of all taxes. After submitted bid value which includes GST, the contractor cannot claim additional GST tax which is tantamount to double payment of tax and more over after finalizing and approving the tender all the taxes or GST cannot be excluded from the tender condition which is not permissible and tantamount to favouring one bidder over the other bidders and against the spirit of Tamil Nadu Tender in Transparency Act, 2000. Only to reduce the tax burden, the government has issued G.O.Ms.No.264 dated 05.09.2017, which stated that GST council ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the bid document, the supplier may be asked to furnish breakup of the taxes within the contracted amount, giving details and explanations and based on this estimate of total subsumed tax shall be arrived. For instance, if for the contracted amount of Rs. 48 Lakh in the example above, the supplier states that the Central Excise Duty is Rs. 1 Lakh and VAT or CGST is Rs. 1 Lakh, after checking the reasonability of his claim, the subsumed tax may be arrived at Rs. 2 Lakh. c) The estimate of subsumed tax should also be worked out independently from the departmental estimates. Revised Schedule of Rate (SOR) showing basic price and tax components separately are being issued by the Public Works Department. Using the revised SOR, revised depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner, appointed a consultant M/s.G.Sekar Associates to resolve the GST issue. As per the report, the petitioner has to execute a supplemental agreement to the tune of Rs. 175.32 crores as against the original value of Rs. 179.69 crores. Accordingly, as per the supplemental agreement which has been reduced to Rs. 4.37 crores by the proceeding dated 07.06.2019. It was also communicated to the petitioner to execute the supplemental agreement by the communication dated 11.07.2019. However, the petitioner failed to execute any supplemental agreement. 13. Further the effective date of GST was 01.07.2017. The date publication of tender was on 22.06.2017. As per the agreements condition No.1.6, the G.O.Ms.No.264 dated 15.09.2017 and subse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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