Ms Ashan Khan Contractor vs. Assistant Commissioner State Goods And Service Tax

Held

The Court held that the Office Order dated 10.08.2022 clarified that prior to 18.07.2022, the exigible rate of taxation for works executed in favour of the Central Government, State Government, and Local Authority was 12%. The Office Order further stated that amendments made by Notification No.03/2022-Central Tax (Rate) dated 13 July, 2022, with effect from 18th July, 2022, withdrew the concessional rate of 12% and set the applicable rate at 18% (9% CGST + 9% SGST) on construction services covered under specific serial numbers of Notification No.11/2017-Central Tax (Rate). The Court found an apparent error on the face of the record regarding the assessment at 18% if the work was executed before 18.07.2022. The Court resolved the issue by reserving liberty to the petitioner to file a rectification application under Section 161 of the GST Act, 2017, within 15 days of receiving the order. The Assessing Officer was directed to consider and dispose of this application within 15 days thereafter.

Facts

The petitioner, M/s Ashan Khan Contractor, challenged the GST assessment order passed by the Assistant Commissioner, State Goods & Services Tax, Kashipur. The petitioner contended that the Assessing Officer assessed their tax dues at 18%. However, the petitioner argued that for works executed in favour of the State Government during the relevant period, a concessional rate of 12% should have been applied. The revenue, represented by the learned Standing Counsel, was directed to secure instructions. Subsequently, the Court was presented with an Office Order dated 10.08.2022, which clarified the applicable GST rates.

Key Issues

1. Whether the petitioner was entitled to a concessional GST rate of 12% on works executed in favour of the State Government, as contended by the petitioner, or if the applicable rate was 18% as assessed by the respondent? Petitioner's Contention: The petitioner argued that during the relevant assessment period, a concessional rate of 12% was applicable for works executed in favour of the State Government, and therefore, the assessment at 18% was erroneous. Respondent's Contention: The respondent, through the learned Standing Counsel, initially sought instructions. Subsequently, an Office Order dated 10.08.2022 was placed before the Court, which indicated amendments to the GST rate notifications.