Shri M G Arunkumar vs. The Executive Engineer - Karnataka High Court, 29 August 2023

Cause title — parties, addresses and appearances

- 1 - NC: 2023:KHC-D:9629 WP No. 104901 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 29TH DAY OF AUGUST, 2023 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 104901 OF 2023 (GM-RES) BETWEEN: SHRI M.G. ARUNKUMAR, AGE: 48 YEARS, OCC: BUSINESS, R/O: RAMNAGAR, MIRJAN, KUMTA, DIST: UTTARA KANNADA-581333. …PETITIONER (BY SRI SANGRAM S. KULKARNI, ADVOCATE) AND: THE EXECUTIVE ENGINEER, PROJECT DIVISION (PMGSY), KARWAR-581333. …RESPONDENT (BY SRI SHIVAPRABHU S.HIREMATH, AGA) ***** THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO,(I) ISSUE A WRIT OF MANDAMUS DIRECTING THE RESPONDENT THE EXECUTIVE ENGINEER, PROJECT DIVISION (PMGSY), KARWAR TO CONSIDER THE REPRESENTATION DATED 23/5/2023 VIDE ANNEXURE-D GIVEN BY THE PETITIONER AND PAY A SUM OF RS.99,87,960/- TOWARDS GST @ 12% FOR THE PERIOD FROM OCTOBER 2017 TO DECEMBER 2022. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: MOHANKUMAR B SHELAR Digitally signed by MOHANKUMAR B SHELAR Location: DHARWAD Date: 2023.09.02 13:49:04 -0700 - 2 - NC: 2023:KHC-D:9629 WP No. 104901 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 12% GST on the tender amount.

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 27.09.2017. 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 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-D. Inspite of receipt of representation, respondent/Department has not reimbursed the GST NC: 2023:KHC-D:9629 amount at the rate of 12% on Rs.8,32,33,000/- amounting to Rs.99,87,960/-.

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.99,87,960/- 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 NC: 2023:KHC-D:9629 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 23.05.2023 vide Annexure-D. 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 AM List No.: 1 Sl No.: 17