2023 (11) TMI 548 - HC - GST

Maintainability of petition - contract for the execution of the electrical works regarding the augmentation of the power system in Government Medical College, Kozhikode - HELD THAT - The question whether the appellant is entitled to be paid GST @12%/18% on the contract amount received or not is a disputed question of fact which cannot be decided in a writ petition filed under Article 226 of the Constitution of India. The determination of the said question includes the interpretation of the terms of the contract entered into between the appellant and the respondents. Such an exercise cannot be undertaken by the writ court. The remedy open to the appellant is to approach the civil court as rightly held by the learned Single Judge - there are no illegality or impropriety in the judgment impugned. The writ appeal is dismissed.

Summary

Issues involved:
The issues involved in the judgment are the entitlement of the appellant to be reimbursed the tax paid u/s GST Act, 2017 @12%/18% on the work executed, and whether this dispute can be decided in a writ petition u/s Article 226 of the Constitution of India.

Entitlement to Reimbursement of Tax Paid u/s GST Act, 2017 @12%/18%:
The appellant, a Class - A Electrical Contractor, was awarded a contract for the execution of electrical works at a Government Medical College. The appellant contended that despite discharging tax liability @12%/18% by declaring contract receipts in GST returns, the 1st respondent did not reimburse the tax paid, except for deducting 2% towards GST component from the contract amount. The appellant sought direction to reimburse the tax paid. The court noted that the determination of whether the appellant is entitled to be paid GST @12%/18% involves interpreting the terms of the contract, which is a disputed question of fact. The court held that such an exercise cannot be undertaken in a writ petition u/s Article 226 of the Constitution of India. The remedy for the appellant is to approach the civil court for resolution. The writ appeal challenging the dismissal of the writ petition was subsequently dismissed.

Conclusion:
The High Court of Kerala dismissed the writ appeal challenging the judgment of the learned Single Judge, which held that the appellant's remedy regarding reimbursement of tax paid u/s GST Act, 2017 @12%/18% on the work executed is to approach the civil court. The court emphasized that the disputed question of entitlement to GST reimbursement involves interpreting the contract terms, which is beyond the scope of a writ petition u/s Article 226 of the Constitution of India.