Cherian Varkey Construction Company Private Limited vs. Kerala State Coastal Area Development Corporation Limited
Held
The Court held that since the tender documents (Ext.P2 Clause 3.3.3) directed the petitioner to quote rates exclusive of GST, the petitioner could not be faulted for not including it. Relying on previous judgments and a government circular (Ext.P17), the Court directed the respondents to reconsider the petitioner's request for GST payment, taking into account the tender terms, the 1st respondent's decision, the circular, and the cited precedents.
Facts
A construction company, the successful bidder for a tendered work, sought payment of GST on its bills, arguing that the tender conditions (Ext.P1, P2 Clause 3.3.3) stipulated GST would be paid separately. The respondents withheld GST payments, citing another clause (Ext.P2 Clause 3.3.5) and arguing that estimates were inclusive of taxes. The 1st respondent had previously decided to sanction GST (Ext.P16), but the 3rd and 4th respondents sought further clarifications.
Key Issues
Whether the contractor is entitled to separate payment of GST on work bills when the tender conditions directed quoting rates exclusive of GST, despite other clauses suggesting GST is payable by the contractor and the respondents' reliance on pre-GST cost indices.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE VIJU ABRAHAM FRIDAY, THE 18TH DAY OF AUGUST 2023 / 27TH SRAVANA, 1945 WP(C) NO. 855 OF 2022 PETITIONER: CHERIAN VARKEY CONSTRUCTION COMPANY PRIVATE LIMITED, 5TH FLOOR, ALPHA PLAZA, KP VALLON ROAD, KADAVANTHRA, KOCHI-682020, REPRESENTED BY ITS DIRECTOR, MR.REJI M CHERIAN. BY ADVS.SANTHOSH MATHEW ALICE J KANATTVIJAY V. PAULKARTHIKA MARIAARUN THOMASANIL SEBASTIAN PULICKELANANDA PADMANABHAN UNNIKRISHNAN MATHEW NEVIN THOMAS ABI BENNY AREECKAL NANDA SANAL GOKUL ASOK RESPONDENTS: 1 KERALA STATE COASTAL AREA DEVELOPMENT CORPORATION LIMITED 1ST FLOOR, CHALACHITHRA KALABHAVAN BUILDING, VAZHUTHACAUD, JAGATHY P O, THIRUVANANTHAPURAM-695014, REPRESENTED BY ITS MANAGING DIRECTOR. 2 CHIEF ENGINEER KERALA STATE COASTAL AREA DEVELOPMENT CORPORATION LIMITED, 1ST FLOOR, CHALACHITHRA KALABHAVAN BUILDING, VAZHUTHACAUD, JAGATHY P O, THIRUVANANTHAPURAM-695014, 3 HARBOUR ENGINEERING DEPARTMENTGOVERNMENT OF KERALA, KAMALESWARAM, MANACAUD P O, THIRUVANANTHAPURAM-695009., REPRESENTED BY THE CHIEF ENGINEER. 4 EXECUTIVE ENGINEER HARBOUR ENGINEERING DEPARTMENT (MALAPPURAM DIVISION), PONNANI NAGARAM P OM, PONNANI, MALAPPURAM
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