2022 (8) TMI 1559 - HC - GST

Levy of Additional tax liability for execution of subsisting Government contracts - HELD THAT - These writ petitions are disposed of by giving liberty to the petitioners to file appropriate representations 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.

Summary

The High Court of Calcutta, presided over by Justice Md. Nizamuddin, addressed multiple writ petitions concerning the additional tax liability arising from the implementation of the Goods and Services Tax (GST) on government contracts. The petitioners sought directives for the respondents to bear the additional tax liability for contracts awarded either before or after the GST regime was introduced on July 1, 2017, without updating the Schedule of Rates (SOR) to include GST in the Bill of Quantities (BOQ). They also requested the updating of the State SOR to incorporate GST instead of the obsolete West Bengal VAT.

The court granted the petitioners the liberty to submit appropriate representations to the Additional Chief Secretary of the Finance Department, Government of West Bengal, within four weeks. The Additional Chief Secretary is directed to make a final decision on these representations within four months of receipt, after consulting relevant departments. The decision must be reasoned, speaking, and in accordance with the law, considering all relevant judgments cited by the petitioners. Until a decision is made, no coercive action shall be taken against the petitioners. Failure to submit representations within the stipulated time will render the order ineffective. The writ petitions and connected applications were disposed of with these directives.