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TMI Blog2014 (11) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... r petitions, they are being decided by this common order. For the sake of convenience, the pleadings and documents available in W.P. No. 12506/2010 are being referred to in this order. Petitioners in all the cases are Contractors and they were awarded certain contract by the Jabalpur Development Authority with regard to certain construction work. 2. Agreement was entered into and when the petitioners started discharging their duties in accordance to the agreement, it seems that a question arose with regard to payment of service tax. When, notices were issued by the Revenue in the matter of recovery of service tax, it seems that the matter was taken up between the petitioners and Jabalpur Development Authority, and the Jabalpur Develop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P.). 3. In the order passed by the Division Bench, it was held that the petitioners as contractor were under the law are obliged and duty bound to make payment of the service tax and as far as inter se dispute between the petitioners and Jabalpur Development Authority was concerned, certain liberties were granted to the petitioners and with regard to the same, the learned Division Bench on 29-1-2010 in W.P. No. 13410/2009(O), gave the following observations and directions :- "The only question for consideration is that the petitioner is entitled to recover the amount of service tax from the respondent No. 1 either under the common law or under the resolution No. 12 relating to the service tax. Once we hold that under the law the liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution made is available as Annexure-P/12, dated 6-3-2010, the earlier resolution passed on 23-10-2009 has been withdrawn and it is in-fact a review of the earlier resolution. Inter alia contending that the Jabalpur Development Authority is a creation of Statute and once a decision was taken as is evident from Annexure-P/3, dated 23-10-2009 it's review or reconsideration and modification subsequently, vide Annexure-P/12 is not permissible. Inter alia contending that this is without hearing the petitioners, without affording an opportunity of hearing to them and it is beyond the powers available to the Jabalpur Development Authority, this writ petition has been filed for quashing the resolution Annexure-P/12, dated 6-3-2010. 5. It is ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Resolution No. 12, certain decisions were taken by the Jabalpur Development Authority for getting the tax recovered from the ultimate beneficiary of the entire agreement and the construction to be undertaken in accordance with the agreement. The fact remains that this resolution has been withdrawn vide Annexure-P/12 and the question now is as to whether the withdrawal of the resolution is proper or not. While, the matter was considered in the earlier round of litigation between the parties in W.P. No. 13410/2009(O) and other cases, Resolution No. 12 was taken note of and with regard to its implementation, it was held that right is available to the petitioners for getting the service tax refunded after its payment either from the Jabalpur D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rded and the question of breach of agreement or the terms and conditions of the agreement decided. That being so, we are of the considered view that now, the dispute between the petitioners and respondent Jabalpur Development Authority in the matter of refund of service tax is within the realm of arbitration, if any arbitration agreement exists between the parties or the common law remedy available to the petitioners. That being so, we are not inclined to interfere into the matter but deem it appropriate to grant liberty to the petitioners to take recourse to the remedy available either under the common law or for Arbitration, if provided in the agreement. However, having heard learned counsel for the parties, we may point out that the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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