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2018 (3) TMI 900 - HC - GSTConsideration of representations submitted by the petitioner - Levy of GST - Works Contract, on which VAT was imposed previously - the petitioner/association made representations on 05.07.2017, 29.08.2017 and 11.09.2017 to the respondents stating that the contract works for which the agreements were executed prior to 01.07.2017 GST cannot be imposed and 2% VAT alone is applicable. Held that - since the petitioner s representations are pending, it is appropriate for the respondent to respond to the same by giving them a reply. The appropriate person who would be in a position to give reply is that the Commissioner of Commercial Taxes shall give a reply. Because all other authorities are the department of Highways and National Highways etc., who would not be in a position to specifically address the issue pointed out by the petitioner. There will be a direction to the Commissioner of Commercial Taxes to consider the representation given by the petitioner/ association and pass orders on merits and in accordance with law, within a period of four weeks from the date of receipt of a copy of this order.
Issues:
1. Interpretation of tax liabilities post enactment of Central Goods and Services Tax Act, 2017. 2. Representation by the petitioner regarding imposition of GST on works contracts. 3. Consideration of representations by the respondent authorities. 4. Directions to the Commissioner of Commercial Taxes for decision on the representation. Issue 1: Interpretation of tax liabilities post enactment of Central Goods and Services Tax Act, 2017 The petitioner, an association for Road Contractors, raised concerns regarding the imposition of 6% tax by the Central Government towards Works Contract post the enactment of the Central Goods and Services Tax Act, 2017. The State Government's power to levy works contract tax in addition to the Central Government's tax led to a total tax liability of 12% towards works contract. The petitioner contended that contracts executed before 01.07.2017 should only be liable for 2% VAT and not the additional GST. Issue 2: Representation by the petitioner regarding imposition of GST on works contracts The petitioner association submitted representations to the respondent authorities on multiple occasions, highlighting that contracts executed before the GST regime should only be subject to 2% VAT and not the increased GST rate. They also proposed that any additional amount beyond 2% should be remitted by the respondent, considering the representations were not addressed, and no orders were passed. Issue 3: Consideration of representations by the respondent authorities During the proceedings, the Government Advocate informed the court about a Government Order reducing the GST on works contracts for Government work from 18% to 12%. The court directed the Commissioner of Commercial Taxes to consider the petitioner's representation and make a decision within four weeks. The petitioner was granted a personal hearing opportunity, and they were instructed to provide copies of their representations and the court order to the Commissioner for compliance. Issue 4: Directions to the Commissioner of Commercial Taxes for decision on the representation The court issued a directive to the Commissioner of Commercial Taxes to evaluate the petitioner's representation and issue orders based on merit and in accordance with the law within four weeks. The authorised representative of the petitioner was granted a personal hearing opportunity, and they were instructed to ensure effective compliance by providing necessary documents to the Commissioner. In conclusion, the judgment focused on resolving the tax liability concerns of the petitioner association post the implementation of the Central Goods and Services Tax Act, 2017, emphasizing the need for the respondent authorities to consider the representations made and provide a decision within a specified timeframe.
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