Rpl Smasl Cisc Jv Through Its Authorized Signatory Namely Sunil Rungta vs. Central Coalfields Limited Through Its Chairman Cum Managing Director

Facts

The petitioner, RPL-SMASL-CISC (JV), a joint venture, sought reimbursement of Rs. 92,22,016/- paid as Service Tax under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. This tax liability arose from enhanced 'Mid Wage Payments' made to workmen as directed by the respondent, Central Coalfields Limited (CCL). The petitioner relied on the tender document and work order, which stipulated that the employer (CCL) would reimburse increased tax liabilities upon production of documentary evidence. Despite representations, CCL had not reimbursed the amount. The petitioner also sought interest on the paid amount and a declaration that CCL's inaction was illegal and arbitrary.

Held

The Court noted that the petitioner's representation had not yet been considered and disposed of by the competent authority within CCL. The counsel for CCL suggested remitting the matter to the concerned authority for a decision. The petitioner requested a time frame for such a decision. The Court, considering the submissions, directed the competent authority (General Manager, CCL, Piparwar Area, Chatra) to take a decision on the petitioner's claim within six weeks from the receipt of the order. This decision was to be based on all supporting documents, including the agreement, work order, and evidence of Service Tax discharge related to the enhanced mid-wage payments. The Court also stated that if the petitioner remained aggrieved by the decision, they could pursue available legal remedies.

Key Issues

1. Whether the Respondent-Central Coalfields Ltd. is obligated to reimburse the Petitioner for the Service Tax liability discharged under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, amounting to Rs. 92,22,016/-, which arose due to the implementation of 'Mid Wage Payment' as per the contract dated 10.12.2012? Petitioner's Contention: The petitioner argued that Clause 11(vii) of the tender document and the work order dated 10.12.2012 bind CCL to reimburse any increase in tax liability upon production of documentary evidence. They contended that the Service Tax was an increased liability due to CCL's directive for enhanced mid-wage payments, and despite submitting representations, CCL had failed to reimburse the amount paid under the Sabka Vishwas Scheme. Revenue/State's Contention: The counsel for CCL stated that the petitioner's representation had not yet been considered and disposed of by the General Manager, CCL, Piparwar Area. They submitted that the matter could be remitted to the concerned authority for a decision based on the presented materials.