Srhi Honnappa Ramayya Naik vs. The Executive Engineer - Karnataka High Court, 13 October 2023

Cause title — parties, addresses and appearances

- 1 - NC: 2023:KHC-D:12447 WP No. 106344 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. 106344 OF 2023 (GM-RES) BETWEEN: SHRI HONNAPPA RAMAYYA NAIK, AGE: 53 YEARS, OCC: BUSINESS, R/O: KONALLI, TAL: KUMTA, DIST: UTTARA KANANDA-581323. …PETITIONER (BY SRI SANGRAM S. KULKARNI, ADVOCATE) AND: THE EXECUTIVE ENGINEER, KARWAR PROJECT DIVISION, (NGNRY PHASE III), KARWAR-581301. …RESPONDENT (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 MANDAMUS DIRECTING THE RESPONDENT THE EXECUTIVE ENGINEER, PROJECT DIVISION (PMGSY), KARWR TO CONSIDER THE REPRESENTATION DATED. 31/8/2023 VIDE ANNEXURE-C GIVEN BY THE PETITIONER AND PAY A SUM OF RS. 1,26,69,750/- TOWARDS GST FOR THE PERIOD FROM YEAR 2017-18 TO 2022-23. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: YASHAVANT NARAYANKAR Digitally signed by YASHAVANT NARAYANKAR Date: 2023.11.10 11:30:42 +0530 - 2 - NC: 2023:KHC-D:12447 WP No. 106344 of 2023

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 GST @12% on bill amount of Rs.7,74,14,002/- and @18% on bill amount of Rs.1,87,78,168/-.

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 02.07.2015. 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% and 18% on the total value of 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-C. Inspite of receipt of representation, respondent/Department has not reimbursed the GST amount at the rate of 12% on Rs.7,74,14,002/- amounting to NC: 2023:KHC-D:12447 Rs.92,89,680/- and at the rate of 18% on 1,87,78,168/- amount to Rs.33,80,070/-, which comes to Rs.1,26,69,750/-.

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.1,26,69,750/- 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 12% and NC: 2023:KHC-D:12447 18% 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 31.08.2023 vide Annexure-C. 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. JUDGE

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