9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 987 - HC - GSTDirection on the respondent no. 1 and 4 to pay the liability of GST incurred on works contract executed and completed after 1st July, 2017 - contracts awarded in the pre-GST regime or post-GST regime - HELD THAT - It appears the respondent authorities concerned have to bear the additional tax liability for execution of subsisting Government contract either awarded to the petitioner during pre-GST regime or in post-GST regime without updating the Schedule of Rates (SOR) incorporating the applicable GST while preparing Bill for payment. This writ petition is disposed of by giving liberty to the petitioner to file appropriate representations stating all the facts and provision as referred in preceding paragraph of this judgment, before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks from date. On receipt of such representations the Additional Chief Secretary, Finance Department shall take a final decision within four months from the date of receipt of such representations after consulting with all other relevant departments concerned.
Issues involved:
The issues involved in this case include liability of GST on works contract executed before and after 1st July, 2017, challenge to show cause notices under the Central Goods and Services Tax Act, 2017 and the West Bengal Goods and Services Tax Act, 2017, and the responsibility of the petitioner to pay tax and interest under Section 73 of the GST Act. Liability of GST on Works Contract: The petitioner, a registered entity under the GST Act, claimed that they received work orders during the pre-GST and post-GST regime for construction projects. The petitioner argued that they were unable to include GST in the contract value due to the transition between regimes. The petitioner also highlighted that the Government contractee did not pay GST tax as per the notification and statute, leading to mismatch notices issued by the GST authorities. Challenge to Show Cause Notices: The respondent no. 3 issued various notices under the GST Act, demanding payment of tax, interest, and penalties for the financial year 2017-18. The petitioner contended that the Government contractee should pay the GST tax with interest as applicable, emphasizing that GST is an indirect tax to be collected by the supplier and paid to the authorities. The petitioner sought relief from the burden of additional tax liability on government contracts due to the introduction of GST. Legal Arguments: The petitioner cited notifications and provisions under the GST Act to support their claim that the Government contractee is obligated to pay the applicable tax and interest. Reference was made to previous court decisions, including those involving similar issues of tax liability on government contracts. On the other hand, the respondents argued that the petitioner, being a registered entity under the GST Act, is responsible for collecting and paying the tax, thus the writ petition lacked merit. Judgment and Directions: After considering the submissions, the court disposed of the writ petition by allowing the petitioner to file representations before 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. It was emphasized that no coercive action should be taken against the petitioner until a final decision is made. The court instructed that the decision should be in accordance with the law and after considering all relevant judgments cited by the petitioner. Conclusion: The writ petition was disposed of with no order as to costs, and urgent copies of the judgment were to be provided to the respective advocates. All parties were instructed to act based on the server copy of the order downloaded from the official court website.
|
