Shivendra Kumar vs. The State Of Bihar - Patna High Court, 03 September 2026

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.9371 of 2026 ====================================================== Shivendra Kumar Son of Late Sitaram Mandal, Resident of Village- Bandidubli, P.O.- Arga, P.S.- Baheri, District- Darbhanga. ... ... Petitioner/s Versus 1. The State of Bihar through the Additional Chief Secretary, Rural Works Department, Government of Bihar, Patna. 2. The Additional Chief Secretary, Rural Works Department, Government of Bihar, Patna. 3. The Engineer-In-Chief, Rural Works Department, Government of Bihar, Patna. 4. The Chief Engineer- 6, Rural Works Department, Bihar, Patna. 5. The Superintending Engineer, Rural Works Department, Work Circle, Darbhanga. 6. The Executive Engineer, Rural Works Department, Work Division, Darbhanga- 1. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Dr. Ranjeet Kumar, Adv. : Mr. K. Kaustubh, Adv. : Mr. Rajnish Prakash, Adv. : Ms. Lakshmi Kumari, Adv. : Ms. Manisha Rathor, Adv. : Mr. A. K. Sinha, Adv. : Mr. Aditya Srivastava, Adv. For the Respondent/s : Mr. Government Advocate (05) ====================================================== CORAM: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA and HONOURABLE MR. JUSTICE VIKASH KUMAR

ORAL ORDER (Per: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA) 5 03-09-2026

The petitioner has filed the present writ application for a direction to the authorities to reimburse the amount paid towards Goods and Service Tax Act in respect of four 2/7 agreements as follows:- (i) Agreement No. 11 MBD/ 2018-19 (3054 M/R), work namely "Samadhpura to Adharpur under Baheri Block" (ii) Agreement No. 42 F2/ 2021-22, Work namely Bijuliya to Simra (Block - Baheri). (iii) Agreement No. 76 SBD /(MMGSY-SC) 2018- 19, Work namely PWD Krishna Math to Bhaduliya Tola. (iv) Agreement No. 105 SBD 2020-21-Work namely Trimuhani Bridge.

The petitioner is a registered contractor of the Government of Bihar who entered into four agreements with the Executive Engineer, Rural Works Department, Works Division, Darbhanga-1. The work was related to construction of road with maintenance work from Samadhpura to Adharpur under Baheri Block for Rs. 62,54,667/-. The petitioner completed all the four works within time to the satisfaction of respondent/authorities and the maintenance of five years has also been completed.

Dr. Ranjeet Kumar, learned counsel appearing for the petitioner, submits that out of four agreements entered into between the petitioner and the Rural Works Department, agreement nos. 2 and 4 pertains to GST period, but agreement 3/7 nos. 1 and 3 are having the period of GST as well as VAT. Insofar as GST period is concerned, the Government of Bihar has come out with the notification dated 22.01.2024 incorporating therein that in all the works / contract / maintenance / construction works, due to change in rate of GST with effect from 18.07.2022 and the works/schemes having been estimated at the rate of 12 % of GST earlier, the payment to the contractors after 18.07.2022 against the bill shall carry 18 % GST and the difference amount of 6 % (18 % - 12%), shall be paid to the contractor by the Works Department.

Learned counsel further submits that, as per Clause 35 of SBD, under the heading “Conditions for reimbursement of Levy/taxes, if levied after receipt of tenders”, it has been stated that if any further tax or levy is imposed by statute after the last stipulated date for the receipt of tenders, including extensions if any, and the contractor thereupon necessarily and properly pays such taxes/levies, the contractor shall be reimbursed the amount so paid, provided such payments, if any, is not, in the opinion of the Chief Engineer attributable to delay in execution of work within the control of the contractor.

It is an admitted position and not disputed in the counter affidavit by the State/Respondent that the work was 4/7 completed within time and there was no delay on part of the contractor. Accordingly, the submission is that the respondents may be directed to pay the difference of GST amount of about 6% starting from 18.07.2022 till the completion of work towards payment of RA/final bill.

Mr. Akash Raj, learned counsel for the State submits that on this point of payment of difference of GST rate after 18.07.2022, there is no objection in the counter affidavit. With regard to other two category of agreement i.e., agreement nos. 1 and 3, the same is having impact of VAT as well as GST, both inasmuch as the work was sanctioned prior to 01.07.2017 under different phases, but the NIT was issued after coming into force the GST.

The state has appointed a consultant company namely M/s SKKSS and Co., in order to find out the GST impact assessment of those contracts having both taxing regime, i.e., under VAT Act and GST Act.

Learned counsel for the petitioner submits that vide circular dated 29.01.2019, the contractor was to submit his claim regarding difference of tax amount after filing their returns. The petitioner filed his return in due time and thereafter submitted a claim for payment of difference of tax 5/7 amount on 12.08.2024 before the Executive Engineer, Rural Works Department. The matter remained pending before the Executive Engineer and he did not forward it to the consultant company, namely M/s SKKSS and Co. Since the matter remained pending, the petitioner filed the present writ application for a direction to the concerned authority for payment of difference of tax amount.

During pendency of the writ petition, under the Secretary, Rural Works Department, a meeting was organized on 11.06.2026 in which decision was taken that the GST claim received after 31.05.2026 will not be considered due to delayed submission of the claim by the contractors. The committee also resolved that the GST claim can only be considered if the same has been filed as on 30.05.2026. 10. Considering the submissions advanced by the parties and the nature of dispute, it appears that so far as payment of difference in GST amount after change in rate by virtue of notification dated 22.01.2024 with effect from 18.07.2022 pertaining to agreement nos. 1 and 4 is concerned, the Government has come out with the notification / resolution dated 22.1.2024 to pay the difference amount of 6% to all the contractors under the Works Department, and for afresh 6/7 agreement nos. 1 and 3 having impact of VAT as well as GST rate of taxes, a consultant company has been appointed accordingly. The petitioner is permitted to raise a fresh claim pertaining to all agreements before the consultant company, namely M/s SKKSS and Co., directly within a period of three weeks, with copy of the claim given to the Executive Engineer, Rural Works Department, Works Division, Darbhanga-1. The consultant company is directed to do the GST impact assessment upon the claim of the petitioner, after giving opportunity of hearing to the petitioner as well as to the Executive Engineer, Rural Works Department, Works Division, Darbhanga 1, and decide the same positively within a period of six weeks from the date of submission of claim by the petitioner.

11.

It is made clear that the consultant company, after completing the assessment of the difference of tax, shall forward the same immediately to the concerned department and the concerned department is directed to pay the difference amount to the petitioner within a period of four weeks from the date of impact assessment is forwarded to it by the consultant company.

12.

With the aforesaid direction and observation, the 7/7 present writ application is disposed.

HarshPandey/- (Anil Kumar Sinha, J) ( Vikash Kumar, J) U