Pinki Construction & Anr. Vs Superintending Engineer (Calcutta High Court)
Summary: The Calcutta High Court has directed the Secretary, Public Works Department, to revisit the issue of Goods and Services Tax (GST) reimbursement for Pinki Construction & Anr. concerning works contracts executed after July 1, 2017. The court’s order, issued in the case of Pinki Construction & Anr. Vs. Superintending Engineer, addresses a dispute where the petitioner, a partnership firm registered under the CGST and WBGST Acts, sought a mandamus for the remittance of GST paid on Works Contract Services.
The core of the petitioner’s argument was that the respondent authorities had incorrectly applied a notification dated August 16, 2017, specifically paragraph 3(iv), which pertains to pre-GST contracts. The petitioner contended that contracts executed after July 1, 2017, are governed by paragraph 4 of the same notification, which stipulates the applicability of GST rates for post-GST contracts or ongoing projects where estimates were approved before July 1, 2017. According to paragraph 4, suppliers are liable to pay WBGST and CGST on all taxable goods and services in such scenarios.
The petitioner argued that the denial of GST reimbursement was arbitrary, unreasonable, and discriminatory, thereby violating Article 14 of the Constitution of India, which guarantees equality before the law and equal protection of the laws.
