2024 (8) TMI 1377 - HC - GST

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 - HELD THAT - List this matter for final hearing in the monthly list of July, 2024.

Summary

Issues:
1. Relief sought for additional tax liability on Government contracts pre and post GST regime.
2. Seeking direction to neutralize the impact of unforeseen additional tax burden.
3. Challenge against the impugned order dated 30th January, 2024 under the WBGST Act.
4. Entertaining the writ petition due to unavailability of the Tribunal.
5. Filing of affidavits by respondents and petitioner.
6. No coercive steps for recovery if petitioner deposits further 20% of disputed tax amount.
7. Listing the matter for final hearing in July 2024.

Analysis:
1. The writ petition was filed seeking relief for the additional tax liability on Government contracts awarded before and after the introduction of GST. The petitioner requested a direction for the authorities to bear the tax liability without updating the Schedule of Rates (SOR) to incorporate applicable GST. The petitioner also sought to neutralize the impact of unforeseen tax burdens on ongoing contracts and update the State SOR with applicable GST going forward.

2. The court granted liberty to the petitioner to submit a representation to the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks. The Additional Chief Secretary was directed to make a decision within four months after consulting relevant departments and considering the petitioner's submissions. No coercive action was to be taken against the petitioner until a final decision was made.

3. The writ petition also challenged an order passed by the appellate authority under the WBGST Act. Since the Tribunal was unavailable, the court decided to entertain the petition. The court emphasized that the issues raised required affidavits from the respondents to be adjudicated properly.

4. The court directed the respondents to file an affidavit-in-opposition within four weeks, with the petitioner given two weeks to respond. No coercive steps for recovery were to be taken if the petitioner deposited an additional 20% of the disputed tax amount within ten days.

5. The matter was scheduled for final hearing in July 2024, with both parties instructed to prepare short written notes of arguments for the hearing. The court emphasized the importance of following due process and considering all relevant judgments in making decisions related to the representation filed by the petitioner.