2024 (2) TMI 421 - HC - GST

Seeking direction upon the respondents authority concerned to bear the additional tax liability for execution of subsisting Government contracts either awarded in the pre-GST regime or in the post-GST regime without updating the Schedule of Rates (SOR) - HELD THAT - This writ petition is disposed of by giving liberty to the petitioners to file appropriate representation, before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks from date. On receipt of such representations the Additional Chief Secretary, Finance Department shall take a final decision within four months from the date of receipt of such representation after consulting with all other relevant departments concerned. Petition disposed off.

Summary

Issues involved: Relief for additional tax liability on Government contracts pre and post-GST regime, updating Schedule of Rates (SOR) with applicable GST, neutralizing impact of tax burden, representation before Additional Chief Secretary, Finance Department.

Relief for additional tax liability on Government contracts: The writ petition sought direction for the authority concerned to bear the additional tax liability for executing Government contracts awarded pre or post-GST regime without updating the Schedule of Rates (SOR) to include applicable GST in the Bill of Quantities (BOQ) for bidding. The petitioners also requested relief to neutralize the impact of unforeseen tax burden on ongoing contracts awarded before the introduction of GST on July 1, 2017, and to update the State SOR with applicable GST instead of West Bengal VAT going forward.

Disposition of the writ petition: The High Court disposed of the writ petition by granting the petitioners liberty to file a representation before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks. The Additional Chief Secretary is required to make a final decision within four months of receiving the representation after consulting relevant departments. The order specified that no coercive action shall be taken against the petitioners until a final decision is made. Failure to make the representation within the stipulated time would render the order ineffective.

Procedure for decision-making: The Additional Chief Secretary, in deciding on the representations, is mandated to act in accordance with the law and issue a reasoned order after considering all relevant judgments from different High Courts that the petitioners intend to rely upon. The order emphasized that the Additional Secretary must provide an opportunity for the petitioners or their representatives to be heard before making a final decision.

Conclusion: The writ petition, numbered WPA 1359 of 2024, was disposed of with the aforementioned observations and directions, providing the petitioners with the opportunity to address their concerns regarding tax liability on Government contracts and the incorporation of GST in the Schedule of Rates.