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Case Law Details

Case Name : Gordhandas Gobindram Vs State of Chhattisgarh (Chhattisgarh High Court)
Appeal Number : WPC No. 5471 of 2022
Date of Judgement/Order : 20/12/2022
Related Assessment Year :
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Gordhandas Gobindram Vs State of Chhattisgarh (Chhattisgarh High Court)

Assessee allowed to take reimbursement of additional GST liability on contract/work order awarded in pre-GST regime

The Hon’ble Chhattisgarh High Court in M/s Gordhandas Gobindram v. State of Chhattisgarh [WPC No. 5471 of 2022 dated December 20, 2022] allowed the petition filed by the assessee to seek reimbursement of the additional tax liability on implementation of the Goods and Services Tax (“GST”) law for contracts and work orders which had been executed before the GST regime.

Facts:

This petition has been filed by M/s Gordhandas Gobindram (“the Petitioner”), who was awarded a contract/work order by the Public Works Department, Raipur (“the Respondent”) prior to the introduction of GST law. The Petitioner on account of the introduction of new GST law was required to pay certain additional tax liability, which the Petitioner now intends to get it refunded from the Respondent.

The Petitioner submitted that the Respondent itself has taken a policy decision vide order dated October 10, 2018 (“Impugned Order”) passed by the State Government to ensure the reimbursement of additional tax liability incurred by the contractors in respect of contracts, which were awarded prior to July 1, 2017 i.e. the date from which the GST law came into force.

Issue:

Whether the Petitioner is entitled to seek reimbursement of additional GST liability imposed after the introduction of GST law?

Held:

The Hon’ble Chhattisgarh High Court in WPC No. 5471 of 2022 held as under:

  • Relied on the judgment of the Hon’ble Chhattisgarh High Court in M/s D.A. Enterprises v. State of Chhattisgarh [WPT No.94 of 2020 on November 17, 2022], wherein under identical set of facts the Court allowed the petition.
  • Permitted the Petitioner to approach the Respondent in terms of the Impugned Order.
  • Directed the Petitioner to file a fresh claim and produce necessary proof of the additional tax liability incurred on account of the introduction of the GST law within a period of one week.
  • Further directed the Respondent, to scrutinize Petitioner’s fresh claim and take a decision within a further period of 90 days.

Assessee allowed to take reimbursement of additional GST liability on contractwork order awarded in pre-GST regime

FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT

1. The instant writ petition has been filed by the petitioner in respect of additional tax liability incurred by the petitioner in the light of GST law introduced w.e.f. 1.7.2017 onwards.

2. The matter pertains to the contract / work order given to the petitioner prior to the introduction of the GST law. The petitioner on account of the introduction of new GST law was required to pay certain additional tax liability, which the petitioner now intends to get it refunded from the respondents. Reliance has been placed by learned counsel for the petitioner on the order of the State Government itself dated 10.10.2018, wherein the respondent-Public Works Department itself has taken a policy decision to ensure the reimbursement of additional tax liability incurred by the contractors in respect of contracts, which were awarded prior to 1.7.2017 i.e. the date from which the GST law came into force. Learned counsel for the petitioner further relies upon the order of this Court in WPT No.94 of 2020 (M/s D.A.Enterprises v. State of Chhattisgarh and others), wherein under identical set of facts, this Court has allowed the said writ petition i.e. WPT No.94 of 2020 on 17.11.2022.

3. On the other hand, learned State Counsel submits that subject to the petitioner furnishing a fresh claim along with all relevant proof of the additional tax liability incurred by the petitioner by producing documents in respect of the additional payment that the petitioner was required to be paid on account of the introduction of the GST law, the claim of the petitioner shall be considered in terms of the order of the State Government dated 10.10.2018 (Annexure P-2).

4. Considering the submissions of learned counsel for the parties and also taking into consideration the judgment of this Court in the case of M/s D.A.Enterprises (supra), the writ petition as of now stands disposed of permitting the petitioner to approach respondents No.2 to 5 in terms of the order of the State Government dated 10.10.2018 (Annexure P-2). The petitioner is also required to produce before the authority concern necessary proof of the additional tax liability incurred on account of the introduction of the GST law within a period of one week. Subject to the petitioner approaching respondents No.2 to 5 along with fresh claim and necessary proof, the respondents-authorities shall scrutinize the same and take a decision within a further period of 90 days from the date of receipt of claim of the petitioner along with copy of this order keeping in mind the order of the State Government dated 10.10.2018 (Annexure P-2). No cost(s).

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(Author can be reached at [email protected])

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