M/S Amma Consruction INDIA Private Limited vs. Karnataka Slum Development Board
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Cause title — parties, addresses and appearances
ORAL ORDER
In these petitions, petitioner seeks for the following reliefs:- “(i) Issue a writ of mandamus directing the respondents to consider the representation dated 05.12.2024 which is produced as Annexure-A and representation dated 05.10.2023 which is produced as Annexure-B and reimburse the differential tax amount to the petitioner; NC: 2025:KHC:13220 WP NO.35413 OF 2024 C/W WP NO.35144 OF 2024
(ii) Issue a writ of mandamus directing the respondents to pay interest on tax dues as per statutory interest rate chargeable under CGST Act;
(iii) Grant such other and further reliefs as this Hon'ble Court deems fit in the facts and circumstances of the case including an order as to costs.”
Heard learned counsel for the petitioner and learned counsel for respondents and perused the material on record.
A perusal of the material on record will indicate that the issue in controversy involved in the present petition is directly and squarely covered by the judgment of this Court in the case of Chandrashekaraiah & others vs. State of Karnataka & others - & connected cases disposed of on 11.04.2023 which has been followed by a co-ordinate Bench of this Court in the case of M.G.Arunkumar vs. State of Karnataka & others - W.P.No.104908/2023 dated 29.08.2023 as well as of Karnataka – W.P.No.25439/2023 dated 19.02.2024 and M/s.Apoorva Construction Co., vs. State of Karnataka – W.P.No.28/2024 dated 19.02.2024, in which, this Court held as under:- NC: 2025:KHC:13220 WP NO.35413 OF 2024 C/W WP NO.35144 OF 2024
“ The petitioner is before this Court, seeking the following prayers: "(a) Issue a writ or such other order in the nature of Mandamus directing the Respondents to refund the differential GST amount paid by the Petitioners for the works executed by each of the Petitioners respectively, as per the representations dated 02.08.2022, 16.06.2023, 17.06.2023, 20.09.2023 and 30.09.2023 etc., given by the Petitioners-Contractors to respective Respondent- employers (as per the abstract Annexed) and produced at Annexure - B to B4. (b) Issue a writ or such other order directing the Respondent No.1 - State Government, to issue a circular/policy to address the issue of payment of GST on works contract which are executed under VAT regime or under old Schedule of Rates wherein, GST is not paid by the Respondent-Employers but is levied and paid by the Petitioner-Contractors to the GST department. (c) Pass such other orders as may be deemed appropriate under the circumstances of the case, in the ends of justice."
Heard Sri. Naveen G.S., learned counsel appearing for the petitioner, Smt. Navya Shekhar, learned AGA appearing for respondent No.1 and have perused the material on record.
Learned counsel appearing for the petitioner submits that the prayer that is sought is to be allowed in the light of the law laid down by the Co-ordinate Bench in and connected cases disposed on 11.04.2023, wherein the Co-ordinate Bench of this Court, has held as follows:
"
In the result, I pass the following:- ORDER
(i) Petitions are hereby disposed of.
(ii) The Respondents-State and other Govt agencies / Respondents who have entered into works NC: 2025:KHC:13220 WP NO.35413 OF 2024 C/W WP NO.35144 OF 2024
contract with the Petitioners are issued the following directions / guidelines:-
(a) Calculate the works executed pre-GST (prior to 01.07.2017) under KVAT regime and payments received by the Petitioners.
(b) The payments received by the Petitioners pre- GST for such of the works executed before 01.07.2017 are to be assessed under KVAT tax regime – either under COT or VAT scheme as applicable.
(c) Calculate the balance works to be completed or completed after 01.07.2017, in the original contract.
(d) Derive the rate of materials, KVAT items required or used to complete the balance works.
(e) Deduct the "KVAT" amount from those materials and the service tax, if applicable.
(f) Add the applicable "GST" on those items.
(g) Input Credit on the materials is to be arrived at and be set off as against the output GST, for those assessed under regular VAT.
(h) Further, the “tax difference” should be calculated on such balance works executed or to be executed after 01.07.2017 separately.
(i) Based on the result obtained on calculation of the tax difference on the contract value, concerned department/authority has to decide whether agreement needs to be changed or not.
(j) A supplementary agreement may be signed with the Petitioners for the revised GST-inclusive work value for the Balance Work completed or to be completed as determined above and in case the revised GST- inclusive work value for the Balance Work, completed or to be completed after 01.07.2017, is more than the original agreement work value, the Petitioners are to be paid /reimbursed, as the case may be, the differential tax amount by the concerned employer; so also, in case payments for works completed pre-GST are made post- GST, the concerned employer has to pay or reimburse, as the case may be, the differential tax amount, to the Petitioners. NC: 2025:KHC:13220 WP NO.35413 OF 2024 C/W WP NO.35144 OF 2024
(iii) Petitioners are directed to submit comprehensive representations to the respective employers/Respondents within a period of 4 weeks from the date of receipt of a copy of this order, irrespective of whether they have completed the works pre-GST or post- GST or payments were received or yet to be received post-GST.
(iv) If such representations are submitted, the respective employers/Respondents are directed to consider and dispose of the same in the light of the aforesaid directions / guidelines as expeditiously as possible and at any rate within a period of 8 weeks from the date of submission of the representations.
(v) In view of the interim orders passed by this Court in the present petitions, such of the petitioners who had not filed their GST returns during the period after 01.07.2017 are permitted to file their returns / amended returns, pursuant to the calculation of the differential tax as per procedure above under GST regime, without insisting on interest or penalty or limitation.
(vi) The GST authorities are also directed not to take precipitative action against the Petitioners for a period of 6 months from the date of receipt of a copy of this order.
(vii) Liberty is reserved in favour of the petitioners to challenge any order / decision passed / taken by the respondents or the authorities, subsequent to this order and also take recourse to such remedies as available in law."
Another Co-ordinate Bench of this Court in terms of its order dated 29.08.2023 in W.P.No.104908/2023 follows the aforesaid order and allows the petition. The Co-ordinate Bench has held as follows:
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It is not in dispute that the entire tender process and allocation of work by respondent/Department is post coming into force of Goods and Services Tax. If petitioner, who is a registered Civil Contractor has completed the tender work, respondent/Department being a service recipient is under bounden duty to reimburse GST amount of Rs.2,16,51,903/- in terms of Section 13 of The Central Goods and Services Tax Act, 2017. It is also not in NC: 2025:KHC:13220 WP NO.35413 OF 2024 C/W WP NO.35144 OF 2024
dispute that petitioner, who is a class-I contractor having rendered service, is under mandatory duty to pay GST amount to the department. Equally respondent/Department is under bounden duty to reimburse the GST amount. It is borne out from the records that since necessary payment at the petitioner's end the applicable GST being statutory requirement, the respondent/Department ought to have reimbursed 12% GST amount on the total work done by petitioner. Since, there is total inaction on the part of respondent/Department, this is a fit case where mandamus needs to be issued. For the reasons stated supra, I proceed to pass the following:
ORDER
i) Writ petition is allowed.
ii) The respondent is hereby directed to reimburse GST amount as indicated in the representation dated 15.04.2023 vide Annexure-E.
iii) The respondent/Department shall reimburse the said amount within a period of six weeks from the date of receipt of copy of this order.
In the light of the issue standing answered, the petition deserves to succeed and the prayer that is sought for is to be allowed.
For the aforesaid reasons, the following: ORDER
(i) The petition is allowed. (ii) The respondents are hereby directed to reimburse GST amount as indicated in the representations dated 02.08.2022, 16.06.2023, 17.06.2023, 20.09.2023 and 30.09.2023. (iii) The respondents/Department shall reimburse the said amount within a period of six weeks from the date of receipt of a copy of this order.”
In view of the aforesaid facts and circumstances, present petitions also deserves to be allowed. NC: 2025:KHC:13220 WP NO.35413 OF 2024 C/W WP NO.35144 OF 2024
In the result, I pass the following:- ORDER
(i) Petitions are hereby allowed.
(ii) The respondents are directed to reimburse the GST amounts as indicated in the representations/letters of the petitioner at Annexures 'A' and 'B' dated 05.12.2024 and 05.10.2023 respectively together with applicable interest within a period of four weeks from the date of receipt of a copy of this order. . (S.R. KRISHNA KUMAR) JUDGE
ARK List No.: 1 Sl No.: 17
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.