Case Law Details
EKK Infrastructure Limited Vs Kerala State Transport Project (Kerala High Court)
Introduction: Explore the insightful Kerala High Court ruling in the case of EKK Infrastructure Limited vs. Kerala State Transport Project, delving into the complex issue of GST liability within contracts. This legal analysis examines the conflict between quoting rates excluding GST in bid documents and indicating inclusive rates in the contract.
Analysis: The case centers around the dichotomy between bid documents and contract terms regarding GST inclusion. The petitioner, EKK Infrastructure Limited, was mandated to quote rates without GST in the bid, despite the contract indicating all-inclusive rates. The court debates whether the petitioner should bear the GST liability or if the recipient of services, i.e., the respondent, should be responsible.
The court underscores the significance of the bid documents, which required quoting rates excluding GST. This aspect aligns with a precedent, emphasizing that terms in the notice inviting tenders must govern the contract. Moreover, the court contends that since GST is a tax borne by the ultimate beneficiary, the respondent should be accountable for its payment.
The court draws upon the division bench’s judgment to substantiate its stance, elucidating that the bid amount’s exclusion of GST is a crucial factor. This divergence dismisses the relevance of cases involving mere changes in tax rates.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
