Chandra Sekhar Jena vs. State Of Odisha

Held

The Court noted that the issue was identical to W.P.(C) No.5933 of 2020 and directed the Petitioner to make a comprehensive representation before the appropriate authority within four weeks. The Court held that the authority must consider and dispose of this representation in light of the revised guidelines dated December 10, 2018, issued by the Finance Department, Government of Odisha. The disposal should be done expeditiously, preferably within three months from the receipt of the certified copy of the order. The Court also stated that if the Petitioner is aggrieved by the authority's decision, they are free to challenge it. No coercive action was to be taken against the Petitioner until the authority reached a decision. The writ petition was disposed of with these directions.

Facts

The Petitioner, Chandra Sekhar Jena, filed a writ petition challenging the State's action of not reimbursing the differential tax amount arising from the transition from Value Added Tax (VAT) to Goods and Services Tax (GST) effective July 1, 2017. The Petitioner's grievance stemmed from the increased tax liability on works contracts entered into before the GST regime but executed partly or wholly after its implementation. The State had issued revised guidelines on December 10, 2018, superseding earlier guidelines from December 7, 2017, to address such issues faced by contractors. These revised guidelines provided a procedure for calculating the GST-inclusive work value for balance work executed after June 30, 2017, and for reimbursement or recovery of excess amounts.

Key Issues

1. Whether the Petitioner is entitled to reimbursement of the differential tax amount arising from the change in tax regime from VAT to GST for works contracts executed partly or wholly after July 1, 2017, when the tender was invited prior to that date. Petitioner's Contention: The Petitioner argued that the introduction of GST resulted in a tax liability that was not envisaged at the time of entering into the agreement, thus seeking reimbursement for the differential tax amount. Revenue/State's Contention: The State submitted revised guidelines issued by the Finance Department on December 10, 2018, which provided a mechanism for determining the GST-inclusive work value for balance work and for reimbursement or recovery of amounts. The State relied on these revised guidelines to address the Petitioner's grievance.