M/S.Triveni Civi-Tech Private LTD. vs. The Executive Engineer,Rural Works Division

Held

The Court directed the petitioner to make a comprehensive representation before the appropriate authority within four weeks, detailing their grievance. The authority was instructed to consider and dispose of this representation expeditiously, preferably by February 29, 2020, in light of the revised guidelines dated December 10, 2018, issued by the Finance Department, Government of Odisha. The Court also stipulated that no coercive action would be taken against the petitioner until February 29, 2020. If the petitioner remained aggrieved by the authority's decision, they would be at liberty to challenge it. The Court disposed of the writ petition with these directions.

Facts

The petitioner, a works contractor, challenged the State's action in not reimbursing the differential tax amount arising from the transition from Value Added Tax (VAT) to Goods and Services Tax (GST) effective July 1, 2017. The petitioner's grievance was that they were required to pay GST on contracts entered into before the GST regime, which was not originally envisaged. The State submitted that revised guidelines were issued by the Government of Odisha, Finance Department, on December 10, 2018, superseding earlier guidelines from December 7, 2017. These revised guidelines addressed the issue of works contracts executed partly or wholly after July 1, 2017, for tenders invited prior to that date.

Key Issues

1. Whether the petitioner is entitled to reimbursement of the differential tax amount arising from the change in tax regime from VAT to GST for works contracts entered into before July 1, 2017, but executed thereafter? (Mixed question of law and fact, concerning the interpretation and application of tax laws and contractual terms). Petitioner's contention: The petitioner argued that the introduction of GST resulted in an additional tax burden not contemplated at the time of entering into the agreements, and therefore, they should be reimbursed for this differential tax amount. Revenue's contention: The learned Additional Government Advocate submitted that the Government of Odisha had issued revised guidelines on December 10, 2018, which provided a procedure for determining the amount payable to works contractors in such situations. These guidelines aimed to address the claims for additional amounts towards GST for works put to tender prior to July 1, 2017, but executed thereafter.