2021 (4) TMI 415 - HC - GST

E-auction - Levy of CGST and SGST - Advertisement of Tender for allotment of industrial and commercial plots through online auction/e auction on an 'as is where is' basis - HELD THAT - Issue notice to the respondents returnable on 22.06.2021. If the petitioners deposit bid amount of ₹ 5,15,01,608/ on or before 04.04.2021 and also an amount of CGST and SGST of ₹ 92,70,290/ before the respondent - GIDC within a period of one week from 04.04.2021, the said amount shall be accepted by the respondent GIDC without prejudice to the rights and contentions of the parties and subject to the final outcome of the present petition.

Summary

Issues:
1. Interpretation of conditions in online e-tender cum e-auction for allotment of industrial and commercial plots by Gujarat Industrial Development Corporation (GIDC).
2. Dispute regarding the payment of CGST and SGST on the bid amount.
3. Petitioners' readiness to deposit bid amount and taxes subject to the final outcome of the present petition.
4. Execution of deed by GIDC in favor of petitioners pending the outcome of the petition.

Analysis:
1. The petitioners, represented by Ms. Megha Jani, challenged the communication from GIDC demanding payment of CGST and SGST amounting to ?92,70,290, despite the absence of such a condition in the e-auction notice. The petitioners contended that they are only obligated to pay the bid amount of ?5,15,01,608. The High Court noted the discrepancy and issued notice to the respondents returnable on 22.06.2021 to address the issue.

2. To resolve the matter, the High Court directed the petitioners to deposit the bid amount of ?5,15,01,608 by 04.04.2021 and the CGST and SGST amount of ?92,70,290 within one week from the said date. The court specified that if these amounts are deposited within the stipulated timelines, GIDC should accept the payments without prejudice to the rights and contentions of the parties and subject to the final outcome of the ongoing petition.

3. Additionally, the petitioners were instructed to file an undertaking confirming their readiness to deposit the CGST and SGST amount within a week from 04.04.2021 without prejudicing their rights in the present matter. The court emphasized that the execution of the deed by GIDC in favor of the petitioners should be contingent upon the receipt of the aforementioned amounts and subject to the outcome of the petition.

4. Direct service of the court's order was permitted on the same day, ensuring prompt communication of the directives to the concerned parties. The judgment highlighted the importance of adherence to the specified timelines for depositing the bid amount and taxes, maintaining the rights and contentions of all parties until the final resolution of the petition.