Rakesh Pratap Singh Chauhan Vs State Of U.P. And 3 Others (Allahabad High Court)
Allahabad High Court directs Uttar Pradesh authorities to examine a contractor’s claim for GST payment on the defect liability period of a PWD contract.
Prayagraj: The Allahabad High Court has directed the Uttar Pradesh authorities to examine a claim by a contractor for the payment of Goods and Services Tax (GST) on the defect liability period of a construction contract. The petitioner, Rakesh Pratap Singh Chauhan, approached the court alleging that while GST was paid for the construction work, it was denied for the subsequent maintenance period.
The petitioner had undertaken construction work for the State’s Public Works Department under work orders issued before the implementation of GST. The requirement for GST payment was introduced during the contract’s execution through new legislation and a Government Order issued on November 9, 2017, which stipulated GST payment to contractors.
According to the petitioner, the leviable GST on the construction part of the contract was paid by the respondents and deposited in the relevant accounts. However, the petitioner contended that GST is also payable by the State for the Defect Liability Period following the completion of the construction, and this claim was not being addressed.
The learned State Counsel submitted before the court that the nature of the claim raised by the petitioner could be more appropriately reviewed by respondent no. 2, likely the competent authority within the Public Works Department.
Considering the grievance presented, the High Court disposed of the writ petition by directing respondent no. 2 to examine the petitioner’s claim regarding the release of the GST amount for the Defect Liability Period of the maintenance contract. The court ordered that an appropriate decision be taken in accordance with the applicable Government Order within two months from the date a certified copy of the court’s order is presented. Furthermore, any amount determined to be payable based on this decision must be released within a further period of four weeks thereafter.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
