Pinki Construction & Anr Vs Executive Engineer (Calcutta High Court)
Calcutta High Court has set aside an order issued by the Executive Engineer, directing the Public Works Department to revisit the issue of Goods and Services Tax (GST) reimbursement to M/s Pinki Construction & Anr., a partnership firm registered under the CGST Act and WBGST Act. The court found the respondent’s denial of reimbursement for Works Contract Services provided after July 1, 2017, to be “palpably wrong” and contrary to specific government notifications.
The dispute centers on the applicability of GST on Works Contract Services provided by Pinki Construction & Anr. during the period from April 1, 2018, to March 31, 2019, falling squarely within the post-GST regime. The petitioner sought a mandamus from the High Court, asserting that the respondent authorities had wrongly denied them reimbursement for the GST amount, which the firm had reportedly paid out of its own pocket.
The core of the petitioner’s argument hinged on the interpretation of Government Notification No. 5050-F(Y) dated August 16, 2017. Pinki Construction & Anr. contended that the respondent authorities had erroneously applied Paragraph 3(iv) of this notification, which, according to the petitioner, is strictly confined to pre-GST contracts (i.e., those executed before July 1, 2017). Instead, the petitioner argued that their contracts, having been executed after July 1, 2017, were explicitly governed by Paragraph 4 of the very same Notification. Paragraph 4 clearly envisages that “With regard to post-GST contracts or ongoing project where estimates have been approved before 1st of July 2017 then in those work order can be given for supply of goods or service or both work contract, GST rates will be applicable. In other words the suppliers of goods/services or both has to pay WBGST and CGST on all taxable goods / services.”
