Bishambhar Dayal Agrawal vs. State Of Chhattisgarh

Held

The Court disposed of the writ petition by directing the petitioner to submit a fresh claim to the respondent authorities, supported by substantial documents evidencing the payment of GST made during the execution of the contract. The respondent authorities are directed to process and scrutinize this fresh claim upon receipt and take an appropriate decision within 90 days from the date of receipt. The Court noted the petitioner's submission that Annexure P/4 was already filed and agreed to make a fresh claim. The State's counsel assured that the claim would be considered upon verification. The Court did not make a final determination on the merits of the reimbursement claim but facilitated a procedural path for its resolution.

Facts

The petitioner, Bishambhar Dayal Agrawal, a proprietorship firm, filed a writ petition seeking reimbursement of Goods and Services Tax (GST) paid on services provided under contracts awarded by respondent departments for construction and maintenance of rural roads. The contracts were awarded under the old tax regime where no service tax was payable. Following the introduction of GST, the petitioner became liable to pay service tax, which they have paid. The petitioner contends that the quoted price was exclusive of service tax, and as per the contract, any 'New Tax' introduced should be reimbursed by the Executive Engineer upon submission of proof. The petitioner's representation for reimbursement remained pending, leading to the filing of the writ petition.

Key Issues

1. Whether the petitioner is entitled to reimbursement of GST paid on services provided under contracts awarded prior to the introduction of GST, as per the terms of the contract. Petitioner's Argument: The petitioner argues that the contract explicitly states that in case of a 'New Tax' being introduced, the Executive Engineer shall reimburse the same upon submission of proof. Since GST is a new tax regime introduced after the contract award, and the quoted price was exclusive of service tax, the respondents are liable to reimburse the GST paid by the petitioner. They rely on the contractual clause regarding reimbursement of new taxes. Respondents' Argument: The State counsel submits that if the petitioner can produce proof of the additional tax liability incurred due to GST paid during the contract completion, the claim will be scrutinized and processed in accordance with the governing policy.