9911796707
TMI Blog2025 (3) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... , those Circulars/letters/instructions do not apply in a case where the Notice Inviting Tender or the agreement executed between the contractor and the tendering agency clearly specified that the rates quoted shall be deemed to be inclusive of GST. Though certain portions of the letter dated 07.05.2024 and the illustrations given therein, at first blush, appear to support the case of the petitioner, on closer scrutiny, it must be held that even those instructions do not support the case of the petitioner. The Circulars/instructions referred to above deal with the preparation of estimate and not with the final tendering process. It clarifies that while preparing estimates for the purpose of administrative/financial sanction, the estimates mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h (SC KRFB) JUDGMENT [WP(C) Nos.33109/2024, 33117/2024] Can a person who enters into a contract with the Government or its agencies that contains a specific clause that the rate quoted shall be inclusive of 'GST & other taxes' turn around and claim that he is entitled to Goods & Services Tax (GST) over and above the rate quoted by him? This is the short question that arises for consideration in these cases. 2. Petitioners are common in these two writ petitions. Since the issues arising for consideration in these two writ petitions are identical, these writ petitions can be conveniently disposed of by a common judgment. The exhibits and the parties referred to in this judgment are they are marked and they appear in W.P.(C.) No.33109 of 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Counsel appearing for the petitioner in these cases on the instructions of Adv. G. Mini has extensively referred to Ext.P2 Circular dated 14.12.2017, Ext.P3 Circular dated 01.03.2019, Ext.P4 letter dated 07.05.2024, Ext.P5 letter dated 02.08.20224 and Ext.P9 letter dated 17.04.2024 in support of the contention that on account of various factors (which are noticed in the Circulars referred to above), the Government had decided that the estimate for a work shall be prepared without factoring GST and GST shall be paid over and above the amounts quoted by the contractor in respect of the work in question. Substantial reliance is placed on the terms of Ext.P4 letter dated 07.05.2024 and to the examples cited therein to indicate that the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not shy away from complying with the terms of the Circulars/letters referred to above. It is submitted that the Kerala Road Fund Board is also a Government agency and the agreement has been executed on behalf of the Governor of Kerala. Therefore, the instructions contained in the circulars/letter referred to above clearly apply to the work executed by the petitioner for the Road Fund Board. 5. Smt. Jasmine M.M, the Learned Government Pleader appearing for respondent Nos.1, 3, 4 and 5 would submit that the Circulars and the letters/instructions referred to above are clearly not applicable to a case where the tender document and the agreement clearly specify that the rate to be quoted shall be inclusive of GST. It is submitted that any other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into account the amount quoted by the petitioner. The contract conditions are not vague and there is no occasion to apply a contra proferentem construction. To be fair to the learned Senior Counsel for the petitioner he did not even suggest that such a rule must apply to the contract in question. 7. The petitioner has no case that the rates quoted by him were exclusive of GST. Its case proceeds on the basis that, going by the Circulars/letters/instructions referred to above, the Government has clarified (along with illustrations) that, in similar situations, the contractor will be entitled to the rate quoted plus GST at the rate of 18% and, therefore, it is entitled to the same. However, this cannot be accepted. A reading of the letters/i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT rate Works completed during pre-GST period but payment received partially before 30.06.2017 VAT rate Work completed during pre-GST period and part payment received after 01.07.2017 VAT rate Work completed during pre-GST period and full payment received after 01.07.2017 VAT rate Works completed post-GST period and full payment received after 01.07.2017 GST rate Part work completed during pre-GST period and part work completed post GST Period VAT rate for completed works during pre-GST period irrespective of the payment. Remaining works at GST rate Works executed in GST period and advance received during pre-GST period GST rate Agreement executed during pre-GST period and works commenced in GST period. Payment not received GS ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
