M.G. Arunkumar Vs State of Karnataka (Karnataka High Court)
The Karnataka High Court considered a writ petition filed by a registered Civil Contractor aggrieved by the inaction of the respondent/Department in reimbursing 12% GST on the tender amount. The petitioner had been the successful bidder in the tender process, following which the respondent/Department accepted the petitioner’s bid and issued a work order on 24.03.2018. The petitioner claimed that he had completed the contracted work and that the respondent/Department, being the service recipient, was liable to reimburse GST at the rate of 12% on the total value of the completed work as mentioned in the agreement.
The petitioner had submitted a representation vide Annexure-E seeking payment of the GST amount. Despite receipt of the representation, the respondent/Department had not reimbursed GST at the rate of 12% on Rs.18,04,32,523/-, which amounted to Rs.2,16,51,903/-. The petitioner therefore approached the High Court seeking relief against the alleged non-payment of the GST amount.
The High Court noted that it was not in dispute that the entire tender process and allocation of work by the respondent/Department took place after the coming into force of GST. The Court further recorded that the petitioner was a registered Civil Contractor and that, having completed the tender work, the respondent/Department, as service recipient, was under a bounden duty to reimburse the GST amount of Rs.2,16,51,903/- in terms of Section 13 of the Central Goods and Services Tax Act, 2017.
