M/S. Vriddhi Infratech INDIA PVT. LTD. vs. The Executive Engineer
Held
The Court found a prima facie lack of basis for the additional 3% deduction without proper determination of subsumed VAT liability. It quashed the impugned speaking order (Ext.P7) and remitted the matter to the 2nd respondent for fresh consideration after affording the petitioner a hearing.
Facts
The petitioner, a contractor, tendered for CPWD works in the pre-GST regime, completing them post-GST. A dispute arose over the calculation of GST compensation, specifically the deduction of an additional 3% from the base price after accounting for VAT on materials, which the petitioner contested as baseless.
Key Issues
Whether the Central Public Works Department's methodology for calculating GST compensation for pre-GST tendered works, by deducting an additional 3% beyond the actual VAT on materials, was legally sound, and if such deduction lacked a proper basis for determining the subsumed tax liability.
Sections Cited
Rule 10 of the Kerala Value Added Tax Rules
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 MR. JUSTICE GOPINATH P. FRIDAY, THE 13TH DAY OF JANUARY 2023 / 23RD POUSHA, 1944 WP(C) NO. 26389 OF 2022 PETITIONER: M/S.VRIDDHI INFRATECH INDIA PVT. LTD., PLOT NO. 330/1, GROUND FLOOR, ROAD NO. 25, BANJARA HILLS, HYDERABAD – 500 034, TELANGANA REPRESENTED BY ITS VICE PRESIDENT, VENKATA RATNA PRASAD Y. RESPONDENTS: 1 THE EXECUTIVE ENGINEER, CENTRAL PUBLIC WORKS DEPARTMENT (CPWD), OFFICE OF THE EXECUTIVE ENGINEER, IISER TVM PROJECT DIVISION - I, MELETHUMELE, VATTIYOORKAVU P.O, THIRUVANANTHAPURAM – 695 013. 2 THE DIRECTOR GENERAL, CENTRAL PUBLIC WORKS DEPARTMENT (CPWD), A-WING, ROOM NO.- 101 NIRMAN BHAWAN, NEW DELHI – 110 011. 3 THE CHIEF ENGINEER, CENTRAL PUBLIC WORKS DEPARTMENT (CPWD), C.G.O. COMPLEX, POONKULAM, VELLAYANI P.O, THIRUVANANTHAPURAM – 695 522. ADV.P.R.AJITH KUMAR THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.01.2023, ALONG WITH WP(C).25732/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NOS. 26389 & 25732 OF 2022 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 13TH DAY OF JAN
The judgment continues below.
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