Athreya Constructions Vs Executive Engineer Pwd Division (Karnataka High Court)
The Karnataka High Court heard a petition filed by Athreya Constructions concerning the increase in the Goods and Services Tax (GST) rate applicable to a work order issued to them by the Executive Engineer, PWD Division, Chitradurga. The work order, dated September 28, 2021, was for the construction of a mini Vidhana Soudha at Hosadurga. At the time the work order was issued, the prevailing GST rate was 12%. However, a notification dated July 18, 2022, increased this rate to 18%. Athreya Constructions raised invoices applying the enhanced 18% GST but contended that they were liable to pay only 12% as per the agreement terms of the work order. In this regard, they submitted a representation dated December 2, 2023, to the Executive Engineer, the first respondent. The Executive Engineer subsequently forwarded a letter regarding this matter to the Superintendent Engineer, the fifth respondent.
The counsel for the respondents submitted to the court that the concerned authorities would consider the representation submitted by Athreya Constructions and pass an appropriate order within a reasonable timeframe. Taking note of this submission and the fact that the work was carried out based on the work order issued prior to the GST rate hike, along with a relevant circular dated July 30, 2022, the Karnataka High Court directed the first and fifth respondents to consider Athreya Constructions’ representation dated December 2, 2023. The court instructed them to pass appropriate orders in accordance with the law, considering the aforementioned circular, within a period of eight weeks from the date of the order. With these directions, the writ petition was disposed of.
