Kashish Developers Limited vs. The State Of Bihar

Held

The High Court disposed of the writ petition by directing the parties to appear before the Joint Commissioner, State Tax, Patna Central Circle, Patna on 17.11.2021. The Joint Commissioner was directed to positively take a decision within 08 weeks from the date of appearance, after affording adequate opportunity of hearing to all concerned, including the writ petitioner, and allowing them to place on record all essential documents and materials. The Joint Commissioner was to pass a fresh speaking order assigning reasons, which would be supplied to the parties. Liberty was reserved for the petitioner to challenge the order if required, and for parties to take recourse to other available remedies. The Court explicitly stated that it had not expressed any opinion on merits and all issues were left open. If any amount was found due and payable by the petitioner, it was to be paid within two months thereafter; conversely, if an amount was found payable to the petitioner, it was to be refunded in accordance with Chapter -11 of the Value Added Tax Act, 2005. The respondents' counsel undertook to communicate the order to the appropriate authority electronically.

Facts

Kashish Developers Limited (the petitioner) was awarded a works contract under Agreement No. 04 SBD of 2017-18 on 24.06.2017, when the Bihar Value Added Tax Act, 2005 was in force. The petitioner received taxes as per the VAT Act. Following the implementation of the Central Goods and Services Tax Act, 2017 (GST Act) effective from 01.07.2017, the petitioner was compelled to pay GST. The petitioner claims to have paid an excess amount of tax, specifically Rs.16,126,844.28 for the Financial Year 2018-19, by paying GST on the total VAT amount received. The petitioner sought directions for the respondent authorities to pay this excess tax amount.

Key Issues

1. Whether the petitioner is entitled to a refund or adjustment of the excess tax paid due to the transition from VAT to GST for a contract executed prior to the GST regime? (Mixed question of law and fact, concerning the applicability of GST provisions to pre-GST contracts and the calculation of tax liability). Petitioner's Arguments: - The petitioner argued that the contract was executed under the VAT regime, and they received taxes as per the VAT Act. Upon implementation of GST, they were forced to pay GST, leading to an excess payment of Rs.16,126,844.28 for FY 2018-19. - They relied on File No. NRRDA-GO (17)32017-FA dated 06-06-2018 issued by the National Rural Infrastructure Development Agency, Ministry of Rural Development, Government of India, New Delhi, to support their claim for payment of the difference/excess tax. Revenue/State's Arguments: - The judgment does not record any specific arguments made by the respondent authorities regarding the petitioner's claim or the applicability of GST provisions. The parties jointly prayed for the petition to be disposed of with a direction to the Joint Commissioner, State Tax, Patna Central Circle, Patna to pass an appropriate order.