Chhattisgarh HC Orders GST Refund to Government Contractor

B.K. Chawla Contractor Vs State of Chhattisgarh (Chhattisgarh High Court)

The Chhattisgarh High Court has directed the State of Chhattisgarh to process the Goods and Services Tax (GST) refund claim of B.K. Chawla Contractor. The petitioner’s grievance stemmed from the state’s alleged inaction in refunding GST collected during the execution of a contract awarded prior to the implementation of the GST regime in July 2017. The contractor argued that despite repeated requests, the respondents had failed to address their refund claim. The petitioner further contended that similar GST refunds had been granted to contractors working with other government departments, such as the Public Works Department (PWD), Pradhan Mantri Gram Sadak Yojana (PMGSY), National Highways Authority of India (NHAI), Railways, and Central Public Works Department (CPWD).

The court, after hearing the submissions, disposed of the writ petition with a directive to the respondent authorities. The court instructed the authorities to promptly process the petitioner’s GST refund claim, subject to verification of facts and the petitioner’s entitlement. It specifically directed the authorities to consider the petitioner’s contention that similar refunds had been granted in comparable cases involving other government departments. The court emphasized the need for a decision to be made within 90 days from the date of receipt of the court order. This decision highlights the court’s intervention in ensuring timely processing of legitimate refund claims and upholding the principle of equal treatment in similar cases.

FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT

1. The whole grievance of the petitioner is the inaction on the part of the respondents in not refunding the amount of GST collected from the petitioner in the course of execution of the contract that was awarded to the

2. According to the petitioner, the contract was awarded prior to GST regime & GST by the Government from 01.07.2017 during the execution of the works contract.

3. The grievance of the petitioner is that in spite of repeated approach being made to the respondents vide Annexure P/6, there is a total inaction on the part of the respondents so far as the refund of GST is Learned counsel appearing for respondents submits that subject to verification of facts, the claim of the petitioner shall be decided at the earliest.

4. Given the said facts and circumstances of the case, the writ petition as of now stands disposed of directing the respondent Authorities to immediately process the claim of the petitioner so far as the refund of GST is concerned, after the due verification of facts and also the entitlement part of the petitioner is Let an appropriate decision be taken keeping in view the contention of the petitioner that in many of the similar cases of other departments like PWD, PMGSY, NHAI, RAILWAYS, and CPWD the government itself has refunded the GST.

5. Let an appropriate decision be taken within an outer limit of 90 days from the date of receipt of the copy of this order.

6. With the aforesaid observations, the present writ petition stands disposed of.