Liability to pay GST: HC ask parties to avail alternate remedy of Arbitration available as per agreement

Chandra Kishor Singh Vs. Director, Construction And Design Services U P Jal Nigam  (Allahabad High Court)

The petitioner is a contractor who has been granted a contract for construction of 100 Boys’ Hostel GIC, Pratapgarh by the Construction and Design Services U.P. Jal Nigam, respondent no.4. The parties have entered into an agreement for the above purpose.

A dispute has arisen between the parties to the contract as to who is liable to pay GST on the value of the construction work done under the contract. The petitioner alleges that the liability to pay the GST is upon the respondents and not upon it.

The aforesaid dispute is one concerning the agreement between the petitioner and the respondents, which vide Clause 24 provides for resolution of such disputes by Arbitration.

In view of the aforesaid remedy available to the petitioner for seeking an arbitration, we are not inclined to interfere in the matter. The petition is accordingly dismissed on the ground of alternative remedy.