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2018 (3) TMI 1017 - HC - GSTConsideration of representations submitted by the petitioner - Levy of GST - Works Contract, on which VAT was imposed previously - the petitioner/association made representations on 05.07.2017 10.07.2017, 11.07.2017 and 11.09.2017 to the respondents stating that the contract works for which the agreements were executed prior to 01.07.2017 GST cannot be imposed and 2% VAT alone is applicable. Held that - since the petitioner s representations are pending, it is appropriate for the respondent to respond to the same by giving them a reply. The appropriate person who would be in a position to give reply is that the Commissioner of Commercial Taxes shall give a reply. Because all other authorities are the department of Highways and National Highways etc., who would not be in a position to specifically address the issue pointed out by the petitioner. There will be a direction to the Commissioner of Commercial Taxes to consider the representation given by the petitioner/ association and pass orders on merits and in accordance with law, within a period of four weeks from the date of receipt of a copy of this order.
Issues:
1. Interpretation of tax liability post implementation of Central Goods and Services Tax Act, 2017. 2. Representation by the petitioner regarding tax imposition on contract works executed before GST implementation. 3. Impleadment of Secretary to Government, Commercial Taxes Department and Commissioner of Commercial Taxes. 4. Consideration of representation by the Commissioner of Commercial Taxes. 5. Direction for passing orders on merits and in accordance with law. Analysis: The judgment pertains to an association registered under the Tamil Nadu Societies Act, representing road contractors facing tax issues post the implementation of the Central Goods and Services Tax Act, 2017. The contractors used to remit 2% tax under the Tamil Nadu Value Added Tax Act for works executed. However, a notification by the Central Government imposed 6% tax on works contracts, leading to a total tax liability of 12% when combined with the State Government's levy. The association made representations to the respondent, seeking clarity on tax liabilities for contracts executed before GST implementation. The Court directed the impleadment of relevant government officials for a comprehensive discussion on the matter. Regarding the representation, the Court highlighted the need for a response from the Commissioner of Commercial Taxes, as other authorities may not be equipped to address the specific tax issues raised by the petitioner. The Government Order reducing GST on works contracts for Government work to 12% was also referenced, emphasizing the balance between pre-GST and post-GST tax regimes. The Court directed the Commissioner of Commercial Taxes to consider the association's representation and pass orders within four weeks, allowing for a personal hearing for the association's representative. In conclusion, the judgment focuses on resolving the tax-related concerns of the petitioner association in light of the GST implementation, ensuring a fair consideration of their representations by the relevant tax authorities. The direction for the Commissioner of Commercial Taxes to address the representation within a specified timeframe underscores the Court's commitment to upholding legal principles and providing clarity on tax liabilities in the post-GST era.
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