SSP Private Limited Vs Joint Director Directorate General of Goods And Services Tax Intelligence Delhi Zonal Unit & Anr. (Delhi High Court)
The Delhi High Court granted interim relief by staying proceedings arising from a show cause notice issued by the Directorate General of GST Intelligence demanding differential GST from a contractor executing works for the Delhi Jal Board. The dispute concerned whether works contracts awarded by the Delhi Jal Board attract GST at 12% or 18%, depending on whether the Board qualifies as a “local authority” under Central Goods and Services Tax Act, 2017. The petitioner had already paid GST at the concessional rate of 12%, while the tax department contended that the Delhi Jal Board is not a local authority and demanded an additional 6% tax. The Court observed that the determination of the Delhi Jal Board’s legal status under Section 2(69) of the CGST Act is a significant legal issue affecting numerous contractors. Considering the need to avoid prolonged adjudication and noting similar pending cases on the issue, the Court stayed further proceedings on the show cause notice and directed the respondents to file counter affidavits.
Facts:
SSP Private Limited (“the Petitioner”) is a contractor engaged by the Delhi Jal Board for carrying out certain works and had executed works contracts for the said authority.
