2022 (2) TMI 1329 - HC - GST

Reimbursement of taxes due to the petitioner under the goods and service tax - HELD THAT - Having regard to the nature of anomalies pointed out by the petitioner, this Court is of the opinion that a serious consideration ought to be made by the competent amongst the respondents to the anomalies pointed out by the petitioner. As apparently, there is a patent irregularity, which may require an earnest application of mind on the part of the respondents while considering the representation of the petitioner. This writ petition can be disposed of directing consideration of the representations dated 03.12.2020 and 12.10.2021 submitted by the petitioner to the 1st respondent in a time bound manner. Since the 2nd respondent is the competent authority to consider, the representations shall be forwarded by the 1st respondent to the 2nd respondent within two weeks of the receipt of a copy of this judgment.

Summary

Issues: Reimbursement of GST under General Conditions of Contract (GCC) of CPWD

In this judgment, the petitioner, a contractor engaged in construction works for CPWD, raised a grievance regarding the reimbursement of taxes under the goods and service tax (GST) regime. The petitioner claimed entitlement to reimbursement of GST levied after receipt of tenders based on Clause 38 of the General Conditions of Contract (GCC) of CPWD. The petitioner alleged that a circular issued by CPWD introduced a variation in the methodology for calculating compensation for reimbursement, leading to crucial mistakes with far-reaching effects. The petitioner highlighted anomalies in the model calculation sheets attached to the circular and submitted representations to the respondents. The court acknowledged the serious nature of the anomalies pointed out by the petitioner, emphasizing the need for a thorough consideration by the competent authorities. Consequently, the court directed the consideration of the representations submitted by the petitioner in a time-bound manner, emphasizing the importance of addressing the irregularities and anomalies effectively.

The court, after hearing the arguments presented by the petitioner's counsel and the Assistant Solicitor General of India, decided to dispose of the writ petition by directing the competent authority to consider the representations submitted by the petitioner promptly. The court instructed the 1st respondent to forward the representations to the 2nd respondent within two weeks of receiving a copy of the judgment. Furthermore, the court directed the 2nd respondent to evaluate and issue appropriate orders on the representations within three months from the date of receiving the judgment. The petitioner was granted an opportunity for a hearing before a decision was made, emphasizing the importance of considering the correctness of the calculation sheet provided by the petitioner. The court concluded the judgment by disposing of the writ petition and issuing these directives to ensure a fair and expeditious resolution of the reimbursement issues related to GST under the CPWD's General Conditions of Contract.