2024 (7) TMI 1150 - 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) incorporating the applicable GST while preparing Bill of Quantities (BOQ) for inviting the bids - HED THAT - This writ petition is disposed of by giving liberty to the petitioner to file appropriate representation, before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks from date. On receipt of such representation 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

Issues Involved:
Request for direction on additional tax liability for government contracts pre and post GST regime without updating Schedule of Rates (SOR) and Bill of Quantities (BOQ).

Analysis:
The petitioner filed a writ petition seeking direction for the authority concerned to bear the additional tax liability for executing government contracts awarded before and after the introduction of GST without updating the Schedule of Rates (SOR) to incorporate applicable GST in the Bill of Quantities (BOQ). The petitioner also requested relief to neutralize the impact of unforeseen tax burden on ongoing contracts awarded before the GST implementation date and to update the State SOR with applicable GST instead of the inapplicable West Bengal VAT going forward.

The High Court disposed of the writ petition by granting the petitioner the liberty to file a representation before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks. The Additional Chief Secretary is directed to make a final decision within four months from the receipt of the representation after consulting with all relevant departments concerned. The court emphasized that the representation should be considered, and a final decision taken by the Additional Secretary after providing an opportunity for the petitioner or their authorized representatives to be heard. No coercive action shall be taken against the petitioner until the final decision is made. Failure to file the representation within the stipulated time will render the court order ineffective.

Furthermore, the Additional Chief Secretary is instructed to act in accordance with the law, pass a reasoned order on merit, and consider all relevant judgments from different High Courts that the petitioner intends to rely upon while deciding on the representation. The court concluded the judgment by stating that the writ petition is disposed of with the mentioned observations and directions.