Ekk Infrastructure LTD. vs. Kerala State Transport Project (Kstp)
Held
The Court, relying on previous Division Bench judgments, held that since the tender specifically required the petitioner to quote rates excluding GST, the KSTP cannot later demand that the bid should have been inclusive of GST. The impugned orders rejecting the GST claim were set aside, and KSTP was directed to consider and release the GST amounts.
Facts
EKK Infrastructure Ltd. was awarded two road construction contracts by the Kerala State Transport Project (KSTP). The tender documents explicitly instructed bidders to submit their bids *excluding* GST. However, after the contracts were awarded, KSTP refused to pay the GST component, contending that the contract price was inclusive of all taxes as per a general clause in the agreement.
Key Issues
Can a contracting authority refuse to pay the GST component on works contracts when the tender documents explicitly instructed bidders to quote rates *excluding* GST, despite a general contract clause stating prices were inclusive of all taxes?
AI-generated summary — verify with the full judgment below
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN WEDNESDAY, THE 26TH DAY OF JULY 2023 / 4TH SRAVANA, 1945 WP(C) NO.12471 OF 2021 PETITIONER :- EKK INFRASTRUCTURE LIMITED CORPORATE OFFICE AT IIND FLOOR, MUNICIPAL BUILDING, AM ROAD, PERUMBAVOOR – 683 542, REPRESENTED BY ITS AUTHORIZED SIGNATORY, MR.PIUS ANTONY, AGED 55 YEARS, S/O.VARGHESE ANTONY. BY ADVS. DEEPU THANKAN UMMUL FIDA LAKSHMI SREEDHAR RESPONDENTS :- KERALA STATE TRANSPORT PROJECT, (KSTP)
SREE BALA BUILDING, KESTON ROAD, NANTHANCODE, KOWDIAR P.O., THIRUVANANTHAPURAM – 695 003, REPRESENTED BY ITS PROJECT DIRECTOR.
PROJECT DIRECTOR KERALA STATE TRANSPORT PROJECT, (KSTP), SREEBALA BUILDING, KESTON ROAD, NANTHANCODE, KOWDIAR P.O., THIRUVANANTHAPURAM – 695 003. CHIEF ENGINEER KERALA STATE TRANSPORT PROJECT, (KSTP), T.C.N.11/339, SREEBALA BUILDING, KESTON ROAD, NANTHANCODE, KOWDIAR P. O., THIRUVANANTHAPURAM – 695 003. BY SRI.APPU.P.S, GP BY SRI.K.V.MANOJ THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.6.2023 ALONG WITH WP(C).12454/2021, THE COURT ON 26.7.2023 DELIVERED THE FOLLO
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