Karnataka Residential Educational Institutions Society Vs Sweet Home Constructions (Karnataka High Court)
Summary: The Karnataka High Court at Bengaluru, comprising Chief Justice Vibhu Bakhru and Justice K.S. Hemalekha, allowed Writ Appeal No. 2005 of 2025 filed by the Karnataka Residential Educational Institutions Society and set aside the order of the learned Single Judge directing reimbursement of differential GST to the contractor. The judgment was delivered on 11 August 2026.
The dispute arose from a construction contract for the BC Post Metric Girls Engineering Hostel at Karwar, Uttara Kannada District. The Karnataka Residential Educational Institutions Society had invited tenders on 25.10.2017. M/s Sweet Home Constructions submitted its tender on 08.12.2017 and was declared the successful bidder. The parties subsequently executed the contract agreement on 28.02.2018.
The contract price was Rs.3,17,41,000/- (+1.48% above the Schedule of Rates 2016-17). The contractor subsequently raised bills aggregating Rs.3,19,97,005/- and stated that it had discharged GST at 12% and 18%, amounting to Rs.38,79,278/-. According to the contractor, the estimate had made provision for tax at 4%, amounting to Rs.12,99,699/-. It therefore claimed reimbursement of the differential amount of Rs.25,99,398/- along with interest.
The learned Single Judge had allowed the writ petition by relying upon the Karnataka High Court’s earlier decision in Sri Chandrashekaraiah and Others v. State of Karnataka and Others, W.P.No.9721/2019 and connected cases, decided on 11.04.2023, as followed in W.P.No.107489/2024 decided on 19.02.2025. The Single Judge directed the appellant and the State Government to reimburse the GST amount claimed in the contractor’s representation dated 21.11.2024 within six weeks.
