Shri. Honnappa Ramayya Naik vs. The State Of Karnataka - Karnataka High Court, 13 October 2023

Cause title — parties, addresses and appearances

- 1 - NC: 2023:KHC-D:12448 WP No. 106345 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 13TH DAY OF OCTOBER, 2023 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 106345 OF 2023 (GM-RES) BETWEEN: SHRI HONNAPPA RAMAYYA NAIK, AGE: 53 YEARS, OCC: BUSINESS, R/O: KONALLI, TQ: KUMTA, DIST: UTTAR KANNADA-581323. …PETITIONER (BY SRI SANGRAM S. KULKARNI, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, FINANCE DEPARTMENT, VIDHANA SOUDHA, BENGALURU-560001. 2. THE EXECUTIVE ENGINEER, PROJECT DIVISION, SHIKARIPURA. …RESPONDENTS (BY SRI SHIVAPRABHU S. HIREMATH, AGA) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI AND QUASH THE ORDER/REPLY DATED. 6/9/2023 ISSUED BY THE RESPONDENT NO.2 VIDE ANNEXURE-C; ISSUE A WRIT OF MANDAMUS DIRECTING THE RESPONDENT THE EXECUTIVE ENGINEER, PROJECT DIVISION (PMGSY), KARWAR TO CONSIDER THE REPRESENTATION DATED. 31/8/2023 VIDE ANNEXURE-B GIVEN BY THE PETITIONER AND PAY A SUM OF RS. 1,13,39,115/- TOWARDS GST FOR THE PERIOD FROM YEAR 2017-18 TO 2022-23. YASHAVANT NARAYANKAR Digitally signed by YASHAVANT NARAYANKAR Date: 2023.11.10 11:30:23 +0530 - 2 - NC: 2023:KHC-D:12448 WP No. 106345 of 2023 THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

The captioned writ petition is filed by registered Civil Contractor feeling aggrieved by the inaction of the respondent/Department for having failed to reimburse 12% GST on bill amount of Rs.9,26,23,259/- and 18% GST on Bill amount of Rs.12,46,245/-.

The facts leading to the case are as under:

The petitioner, who is a registered Civil Contractor was found to be successful bidder and respondent/Department having accepted petitioner's bid, issued work order on 05.09.2017. Petitioner claimed that he has carried out the work and respondent/Department who is the service recipient is liable to pay GST at the rate of 12% on bill amount of Rs.9,26,23,259/- and 18% on Bill amount of Rs.12,46,245/- on the cost of completed work as mentioned in the agreement.

The petitioner feeling aggrieved by the non- payment of GST amount has submitted a representation vide Annexure-B. Inspite of receipt of representation, NC: 2023:KHC-D:12448 respondent/Department has not reimbursed the GST amount of Rs.1,13,39,115/-.

Heard the learned counsel for the petitioner and learned Additional Government Advocate appearing for respondents.

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. 1,13,39,115/- in terms of Section 13 of The Central Goods and Services Tax Act, 2017. It is also not in 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 is made, the applicable GST being statutory requirement, the respondent/Department ought to have reimbursed GST amount NC: 2023:KHC-D:12448 on the total work done by petitioner. In view of the discussions made supra, the impugned endorsement issued by respondent No.2 as per Annexure-C is not sustainable and the same is liable to be quashed. For the reasons stated supra, I proceed to pass the following: ORDER i) Writ petition is allowed. ii) The impugned endorsement dated 06.09.2023 issued by respondent No.2 vide Annexure-C is hereby set aside. iii) The respondent is hereby directed to reimburse GST amount as indicated in the representation dated 31.08.2023, vide Annexure-B. iv) The respondent/Department shall reimburse the said amount within a period of six weeks from the date of receipt of copy of this order. JUDGE

YAN, List No.: 2 Sl No.: 6