Case Law Details
Prayash Construction Vs State of Odisha and others (Orissa High Court)
Orissa High Court addressed a dispute regarding GST refunds for a government contractor, Prayash Construction, whose payments were locked due to the Online Management Monitoring and Accounting System (OMMAS). The petitioner sought reimbursement of the differential GST amount after a rate revision, arguing that the refund was due despite the final bill being processed before the new rates were announced. The government admitted that the refund was legitimate but cited technical constraints, as the payment system was locked after the final bill was settled in December 2018. The authorities had, however, internally revised the work bill and submitted it for approval. They had also requested the Central authority to unlock the payment portal to process the refund.
The court acknowledged the petitioner’s entitlement and directed the authorities to ensure payment within six weeks. The ruling emphasized that technical limitations should not obstruct due refunds, reinforcing that contractors working on government projects must receive their rightful dues even in cases of procedural bottlenecks. The decision mandates timely action from the relevant authorities to unlock the system and process the payment without further delay.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
1. Mr. Acharya, learned advocate appears on behalf of petitioner and submits, his client is entitled to refund. He submits, counter has been filed and there is no dispute.
2. Mr. Swain, learned advocate, Additional Government Advocate appears on behalf of opposite party no.2, who had awarded the works contract to petitioner. He submits, counter dated 3rd December, 2024 has been filed. Mr. D. Das, learned advocate, Additional Standing Counsel appears on behalf of opposite party no.4.
3. Reproduced below is paragraph-1 from our order dated 7th October, 2024.
“1. Mr. Acharya, learned advocate appears on behalf of petitioner and submits, this is his client’s second writ petition. The first was disposed of by coordinate Bench on order dated 15th November, 2019 directing his client to make comprehensive representation before the appropriate authority in light of latest guideline dated 10th December, 2018 issued by Finance Department, Govt. of Odisha. He demonstrates from page 156, representation dated 25th November, 2019 was made by his client. He is to receive refund. Reminders have been given but the authority remains unmoved. Hence, his client is again before Court.”
Also reproduced below are paragraphs 11, 13 to 16 from counter of opposite party no.2.
“11. That after revision of GST rates on work contract, the petitioner (agency) didn’t submit the revised work bill incorporating the Post-GST rates. As all the PMGSY payments are made through Online Management Monitoring and Accounting System (in short OMMS), the payment site automatically locked once the final bill paid. The final bill was paid to the petitioner on 08.12.2018.
Finally, the GST rates on work contract was issued by Finance Department, Govt. of Odisha on 10-12-2018. By that time, the work was physically completed & final bill also paid to petitioner (Agency).
xxx xxx xxx
13. That the Opp. Party No.2 has never denied the petitioner for reimbursement of the differential tax amount under GST regime, rather the petitioner was asked to submit Post GST revised bill for approval from higher authority.
14. That due to non-submission of revised bill after repeated instruction, the Junior Engineer, Sub-Divisional Officer and the then Executive Engineer prepared the revised bill incorporating the Post-GST rates & submitted the same to higher authority (Chief Construction Engineer) for approval. The rates & revised estimate got approved by Chief Construction Engineer, Rural Works Circle, Bhawanipatna vide letter No.346 dtd.23-02-2022. Copy of the letter No.346 dtd.23-02-2022 is annexed herewith as Annexure-A/2.
15. That, the bill was prepared by the Opp. Party. But due lock in On-line Management & Monitoring System (OMMS) payment site the differential rate could not be paid to the petitioner as PMGSY is a Central Govt. scheme, the payment site are managed by National Rural Infrastructure Development Agency, New Delhi. However, it is requested by this deponent to Chief Engineer, PMGSY to take necessary steps to unlock the payment site for early payment to the petitioner. The Letter No.3096 dated 30.11.2024 for unlocking the Online Management, Monitoring and Accounting System (OMMAS) for payment is annexed herewith as Annexure-B/2.
16. That the claimed amount as submitted by the petitioner in Annexure-4 will be paid to him immediately after unlock of Online Management, Monitoring and Accounting System (OMMAS).”
On query Mr. Swain submits, request has already been made, as stated in paragraph-15 of the counter, to the Central authority. He submits, in his estimate six weeks’ will be time required.
4. The refund be made to petitioner, as said it will be in the counter. Opposite party no.2 is do all things required to ensure that the refund is disbursed within six weeks from date. For the purpose opposite party has liberty of producing certified copy of this order to concerned authority.
5. The writ petition is disposed of.
Author Bio
