2022 (3) TMI 733 - HC - GST

Delay on the part of the respondents in sanctioning the amount of GST receivable by the petitioner - blanket direction to disburse the amount in the absence of any proper verification and consideration by the competent authorities - HELD THAT - On a perusal of the representations submitted by the petitioner as well as the Government Orders, this Court is of the opinion that the 1st respondent has to take a decision on Ext.P7 and Ext.P8, in a time bound manner, bearing in mind the claim put forth by the petitioner. There will be a direction to the 1st respondent to consider Ext.P7 and Ext.P8 representations, as expeditiously as possible, at any rate, within a period of three months from the date of receipt of a copy of this judgment, after hearing the petitioner as well as the 2nd respondent - Petition disposed off.

Summary

Issues: Alleged delay in sanctioning GST amount receivable by the petitioner.

In this judgment, the petitioner was aggrieved by the delay in sanctioning the GST amount receivable. The petitioner had completed the work awarded and had not paid the GST, expecting reimbursement from the respondents. The court noted circulars and government orders indicating that the GST paid by contractors should be refunded. Despite representations and waiting for years, the respondents did not disburse the GST amounts due to the petitioner. The court heard arguments from both parties, where the Senior Government Pleader highlighted the need for case-by-case consideration based on approved bills and government orders. The court decided that the 1st respondent must make a decision on the representations submitted by the petitioner within three months, considering the petitioner's claim. If found eligible, the amounts due should be disbursed promptly.

This judgment emphasizes the importance of timely consideration and disbursement of GST amounts to contractors as per government circulars and orders. It underscores the need for case-specific evaluation rather than a blanket directive, ensuring fairness and adherence to established procedures. The court's directive for a time-bound decision within three months reflects the urgency in resolving such matters to prevent undue delays and financial hardships for the petitioners. Overall, the judgment seeks to uphold the rights of contractors to receive their entitled GST amounts promptly and underscores the role of competent authorities in ensuring a fair and efficient process for disbursement.