Anil Annasaheb Patil Vs Executive Engineer PWD (Karnataka High Court)
Summary: The Karnataka High Court at Dharwad considered a writ petition filed by M/s. Anil Annasaheb Patil, a Class-I Government Contractor, seeking a mandamus directing the Executive Engineer, PWD, Chikkodi Division, Belagavi, to reimburse the differential Goods and Services Tax (GST) amount of Rs.5,68,578.33 with interest at 18% per annum. The claim arose from the petitioner’s construction work relating to the “Court Complex building at Mudalgi”. The petitioner stated that GST came into force from 01.07.2017 during the currency of the contract, replacing the earlier VAT regime, resulting in an additional tax liability which had been discharged by the petitioner.
The petitioner relied upon a representation dated 19.11.2025 seeking reimbursement. The grievance before the Court was that despite payment of the differential GST liability to the competent authority, the respondents had not reimbursed the amount.
The Court noted that the controversy concerning liability for differential tax arising from introduction of GST was no longer res integra. It referred to the decision in W.P.No.104908/2023, disposed of on 29.08.2023, wherein the Court had held that the recipient of works contract service was liable to bear the differential tax liability arising from introduction of GST and that the State, its instrumentalities and Departments were under an obligation to reimburse the differential GST amount payable by the contractor.
