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2025 (1) TMI 1244 - HC - GSTRefund the differential GST amount paid by the petitioner for the works executed by the petitioner - HELD THAT - In the case of SHRI M.G. ARUNKUMAR VERSUS THE STATE OF KARNATAKA THE DEPUTY COMMISSIONER THE UNION OF INDIA 2023 (8) TMI 1531 - KARNATAKA HIGH COURT it was held that The respondent is hereby directed to reimburse GST amount as indicated in the representation dated 15.04.2023 vide Annexure-E. . Conclusion - The respondents are hereby directed to reimburse GST amount as indicated in the representation dated 21.11.2024. Petition allowed.
The primary issue presented in this case revolves around the petitioner's request for the refund of the differential Goods and Services Tax (GST) amount paid for works executed under a contract. The petitioner seeks a writ of mandamus directing the respondents to refund this amount, as the issue has been previously addressed by a Coordinate Bench in a similar case.
The legal framework relevant to this issue includes the transition from the Karnataka Value Added Tax (KVAT) regime to the GST regime, which took effect on July 1, 2017. The petitioner argues that the differential tax amount arises from the change in tax regimes, where the works executed pre-GST were taxed under KVAT, and the works executed post-GST were taxed under the new GST regime. The petitioner contends that the respondents have not reimbursed the GST amount paid by the petitioner, which is a statutory requirement under the Central Goods and Services Tax Act, 2017. The Court's interpretation and reasoning are heavily influenced by precedents set by a Coordinate Bench in W.P.No.9721/2019 and connected cases, where similar relief was granted. The Court notes that the issue is not disputed by the respondents, and the relief sought by the petitioner is consistent with the earlier judgment. The Court emphasizes that the respondents, being government agencies or departments that entered into contracts with the petitioner, are obligated to reimburse the GST amount as per the statutory requirements. Key evidence and findings include the representations submitted by the petitioner to the respondents, detailing the differential GST amount paid and requesting reimbursement. The Court finds that these representations are consistent with the legal obligations of the respondents under the GST regime. In applying the law to the facts, the Court considers the guidelines established by the Coordinate Bench, which outline the process for calculating the tax difference for works executed pre- and post-GST. The guidelines include assessing works executed under the KVAT regime, calculating the balance works completed after the GST implementation, and determining the differential tax amount to be reimbursed to the petitioner. The Court addresses competing arguments by reiterating the statutory duty of the respondents to reimburse the GST amount and the lack of dispute from the respondents regarding the petitioner's claim. The Court concludes that the petitioner's request is justified and aligns with the legal framework and precedents. Significant holdings in this judgment include the reaffirmation of the principles established by the Coordinate Bench regarding the reimbursement of GST amounts. The Court orders the respondents to reimburse the GST amount as indicated in the petitioner's representations, within a specified timeframe. The Court also preserves the petitioner's right to challenge any subsequent decisions made by the respondents or authorities related to this matter. The core principles established in this judgment include the obligation of government agencies and departments to reimburse contractors for GST amounts paid under the new tax regime, especially when the contracts were initially executed under the previous tax regime. The final determination on the issue is in favor of the petitioner, granting the relief sought and directing the respondents to comply with the reimbursement request.
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