Subir Kumar Sen vs. State Of West Bengal And Ors.
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The petitioner, Subir Kumar Sen, filed a writ petition before the High Court of Calcutta seeking directions against the State of West Bengal and its authorities. The core of the petition concerns the additional tax liability arising from government contracts, both awarded before and after the introduction of GST on July 1, 2017. The petitioner argued that the Schedule of Rates (SOR) and Bill of Quantities (BOQ) for these contracts were not updated to incorporate GST, leading to an unforeseen tax burden. The petitioner sought to have this additional tax liability borne by the respondents and to neutralize the impact of GST on ongoing contracts awarded before its implementation. The judgment also notes that an adjudication order dated March 14, 2024, against which a statutory appeal was filed, was kept on record.
Held
The High Court disposed of the writ petition by directing the petitioner to file an appropriate representation before the Additional Chief Secretary, Finance Department, Government of West Bengal, within four weeks. The Additional Chief Secretary is mandated to take a final decision on the representation within four months of its receipt, after consulting all relevant departments. The petitioner or their authorized representative will be given an opportunity of hearing. Crucially, no coercive action will be taken against the petitioners until the Additional Chief Secretary makes a final decision. The judgment emphasizes that the Additional Chief Secretary must act in accordance with the law, pass a reasoned and speaking order on merit, and consider all judgments of various High Courts that the petitioners intend to rely upon. The court did not decide the substantive issues raised by the petitioner but provided a procedural path for their resolution.
Key Issues
1. Whether the respondents are liable to bear the additional tax liability for government contracts awarded either in the pre-GST regime or post-GST regime, where the Schedule of Rates (SOR) and Bill of Quantities (BOQ) were not updated to incorporate applicable GST? 2. Whether the impact of unforeseen additional tax burden on government contracts, arising from the introduction of GST since July 1, 2017, should be neutralized for ongoing contracts awarded before that date? 3. Whether the State SOR should be updated to incorporate applicable GST in lieu of the application of West Bengal VAT for government contracts? Petitioner's Contentions: The petitioner argued that the respondents should bear the additional tax liability for government contracts due to the failure to update SOR and BOQ with GST. They also contended that the impact of GST on ongoing contracts awarded before its introduction should be neutralized and that the State SOR should be updated to reflect GST instead of VAT. Revenue/State's Contentions: The judgment records that both parties were present and heard, but it does not explicitly detail the arguments made by the State or revenue authorities.
AI-generated summary — verify with the full judgment below
WPA 7792 OF 2024 04.04.2024
Sl no. 26
Subir Kumar Sen Ct no. 2
- Vs - P.M.
The State of West Bengal & Ors.
Mr. Himangshu Kumar Ray,
Mr. Subhasis Poddar,
Ms. Shiwani Shaw
… for the petitioner
Mr. Anirban Ray, Ld. Govt. Pleader Md. T. M. Siddiqui, Mr. T. Chakraborty, Mr. S. Sanyal
… for the State
Both parties are present. Supplementary affidavit annexing the adjudication order dated 14th March, 2024 against which statutory appeal has already been filed after compliance of all the formalities and affidavit of service are kept on record. Heard learned advocate appearing for the parties. This writ petition has been filed for the relief by way of direction upon the respondents authority concerned to bear the additional tax liability for execution of subsisting Government contracts either awarded in the pre-GST regime or in the post-GST regime without updating the Schedule of Rates (SOR) incorporating the applicable GST while preparing Bill of Quantities (BOQ) for inviting the bids. The
2 petitioners have also prayed for relief of issuance of direction upon the respondents authority concerned to neutralize the impact of unforeseen additional tax burden on Government contracts since the introduction of GST w.e.f 1st July, 2017 for ongoing contract awarded before the said date and to update the State SOR incorporating applicable GST in lieu of application West Bengal VAT henceforth. Considering the submissions of the parties this writ petition is disposed of by giving liberty to the petitioners to file appropriate representation in the aforesaid regard as referred in preceding paragraph of this order, before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks from date. On receipt of such representations the Additional Chief Secretary, Finance Department shall take a final decision within four months from the date of receipt of such representation after consulting with all other relevant departments concerned. Needless to mention that such representations shall be considered and final decision will be taken up by the Additional Secretary, after giving opportunity of hearing to the petitioners or their authorized representatives. Till the final decision is
3 taken by the Additional Chief Secretary, no coercive action shall be taken against the petitioners. In case of default in making representation within the time stipulated herein this order will not have any force. It is also recorded that the Additional Chief Secretary, while taking decision on the representations to be filed by the petitioners, shall act in accordance with law and pass a reasoned and speaking order on merit and after considering all the judgements of different High Courts upon which petitioners intend to rely. With these observations and directions this writ petition, being WPA 7792 of 2024, stands disposed of
(Md. Nizamuddin, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.