Sri. Abdul Nabi S/O Abdul Razak vs. The State Of Karnataka

Sri B.Sharanabasawa, learned counsel for petitioner submitted that petitioner was awarded tender in terms of notification dated 20.05.2017 issued by respondents. It was submitted that in terms of tender, petitioner completed work and submitted bills. It was NC: 2024:KHC-D:5047 submitted that though respondents had cleared bills insofar as tax amount, entire entitlement of petitioner were not met in their short payment. Same was on ground that claim of tax under Central Goods and Services Tax Act, 2017 (‘GST Act’, for short) was not part of agreement and therefore could not be claimed. Learned counsel for petitioner submitted that said aspect is covered by decision of this Court in W.P.no.9721/2019 and connected matters disposed off on 11.04.2023, wherein guidelines were issued and submits that petitioner is entitled for relief in terms of said decision.

On other hand, Sri A.S.Patil, learned counsel for respondents no.2 to 4 would submit that though petitioner was claiming reliefs in terms of decision of this Court, petitioner had not submitted any representation prior to filing of present writ petition and even in decisions cited sought to be relied upon, this Court had directed petitioners therein to submit comprehensive representations substantiating their claims and directed respondents to consider said representation in light of observations. NC: 2024:KHC-D:5047

Heard learned counsel and perused writ petition records.

From above, there is no dispute about petitioner having been awarded tender works and completing same. Dispute is about entitlement of petitioner for tax paid under GST regime. In this regard, this Court in W.P.no.9721/2019 referred to above has issued following directions. (i) Petitions are hereby disposed of. (ii) The Respondents-State and other Govt agencies / Respondents who have entered into works 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 preGST 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. NC: 2024:KHC-D:5047 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 NC: 2024:KHC-D:5047 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 postGST, the concerned employer has to pay or reimburse, as the case may be, the differential tax amount, to the Petitioners. (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 NC: 2024:KHC-D:5047 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. It is seen that said directions would cover present petition also. Hence, following: ORDER i. Writ petition is disposed off following decision in W.P.no.9721/2019. NC: 2024:KHC-D:5047 ii. Petitioner is directed to submit comprehensive representations to respondents substantiating claim within a period of two weeks from date of receipt of certified copy of this order. iii. Upon receipt of representation, respondents no.2 to 4 are directed to consider representations in light of observations and guidelines issued in above mentioned writ petitions and dispose off representations within a period of eight weeks under intimation to petitioner. JUDGE