M/S. Mahavir Infra Developers PVT.LTD vs. The Executive Engineer
Held
The Court noted that the issue had been decided in several previous cases. The Court directed the petitioner to make a comprehensive representation before the appropriate authority within four weeks, detailing their grievance. The authority was instructed to consider and dispose of this representation expeditiously, preferably by February 29, 2020, in light of the revised guidelines dated December 10, 2018, issued by the Finance Department of the Government of Odisha. The Court also stated that if the petitioner remained aggrieved by the authority's decision, they would be at liberty to challenge it. No coercive action was to be taken against the petitioner until February 29, 2020. The Court did not expressly leave any issue undecided.
Facts
The petitioner, a contractor, challenged 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 from July 1, 2017. The petitioner's grievance was that they were required to pay GST on works contracts entered into before the GST regime, which was not anticipated during the agreement. The State submitted that revised guidelines were issued by the Finance Department on December 10, 2018, superseding earlier guidelines from December 7, 2017, to address such issues related to works contracts under GST.
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 entered into prior to July 1, 2017, but executed partly or wholly after that date, under the provisions of the GST law and related government guidelines. The petitioner argued that the introduction of GST resulted in an unforeseen tax liability on works contracts that were agreed upon under the previous VAT regime. The petitioner sought reimbursement of this additional tax burden. The revenue (State) contended that revised guidelines were issued by the Finance Department on December 10, 2018, which provided a mechanism for determining and reimbursing differential tax amounts for works contracts executed after the GST implementation but tendered before it. These guidelines superseded earlier ones.
Sections Cited
Not specified
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18.12.2019
Heard Ms. K.B. Roy Choudhury, learned counsel for the petitioner and learned Additional Government Advocate for the State-opposite parties.
By way of this writ petition, in substance, petitioner has challenged the action of the opposite parties in not reimbursing the differential tax amount arising out of change in tax regime from Value Added Tax (VAT) to Goods and Service Tax (GST) with effect from 01.07.2017. 3. Since the issue involved in this case has already been decided by us earlier in a number of cases, no purpose will be served by keeping the writ petition pending. Therefore, in the interest of justice, this writ petition is disposed of in terms of the order passed earlier in similar matters.
Batch of writ petitions were being filed on this issue. The main issue involved in such matters is that the difficulty faced by the contractors due to change in the regime regarding works contract under GST. The grievance of the petitioner is that in view of the introduction of the GST, petitioner is required to pay tax which was not envisaged while entering into the agreement.
Learned Addl. Governm
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