Dhingra Brothers (INDIA) vs. State Of Punjab And Ors

Facts

The petitioners, Dhingra Brothers (India) and M/s SKG Infratech Pvt. Ltd., filed multiple writ petitions before the High Court of Punjab and Haryana. They sought directions for the release of the difference in GST amounts for work executed, along with interest. The petitioners argued that while payments were initially made based on CSR rates inclusive of 12% GST, the GST Council subsequently increased the rate to 18% via an Office Memorandum dated November 18, 2022. This increase resulted in an additional tax liability falling on the petitioners. They had submitted representations to the concerned respondents requesting payment of this difference, but neither the payment nor a decision on their representations was forthcoming, leading to the institution of these writ petitions.

Held

The Court noted that the respondents' counsel submitted that speaking orders had been passed on the petitioners' representations, in deference to a previous order of the Court dated April 29, 2025. The Court had previously directed the competent authority to make a final decision on all representations within 15 days and release any outstanding payment. Since the representations have now been decided by passing speaking orders, no further directions are required. The Court closed the writ petitions but clarified that if the petitioners have any grievance against the speaking orders, they are at liberty to take appropriate legal recourse. Furthermore, the Court directed that if any speaking order has not yet been communicated to the petitioners, the concerned authority must ensure its communication within 15 days.

Key Issues

1. Whether the Court should direct the respondents to decide the petitioners' representations regarding the difference in GST rates within a specified time frame, as per Section 3 of the Constitution of India and principles of natural justice. Petitioner's Arguments: The petitioner contended that the respondents had adopted an indolent and lackadaisical approach by failing to decide their representations for the differential GST amount arising from an increase in the tax rate from 12% to 18% as per the GST Council's Office Memorandum dated November 18, 2022. They sought a time-bound decision on their pending representations. Revenue/State's Arguments: The learned counsel for the respondents acknowledged the previous order of the Court and submitted that speaking orders had been passed on the petitioners' representations. They agreed to a direction for the respondents to decide the representations within a time-bound manner.