Prodyut Kumar Roy vs. State Of West Bengal And Ors.

Facts

The petitioner, Prodyut Kumar Roy, filed a writ petition seeking directions against the State of West Bengal and other respondents. The core issue pertains to the additional tax liability arising from government contracts, whether awarded before or after the introduction of GST on July 1, 2017. The petitioner argued that contracts awarded under the pre-GST regime, or post-GST contracts where the Schedule of Rates (SOR) and Bill of Quantities (BOQ) were not updated to include applicable GST, resulted in an unforeseen tax burden. The petitioner sought directions to neutralize this impact and update the State SOR to incorporate GST in lieu of the West Bengal VAT.

Held

The High Court disposed of the writ petition by granting the petitioner liberty to file a representation before the Additional Chief Secretary, Finance Department, Government of West Bengal. The Additional Chief Secretary is directed to take a final decision on the representation within four months of its receipt. This decision must be taken after consulting all relevant departments and providing the petitioner an opportunity of hearing. The Additional Chief Secretary is mandated to pass a reasoned and speaking order on merit, considering all judgments of different High Courts upon which the petitioner intends to rely. Until the final decision is taken, no coercive action shall be taken against the petitioner. The court noted that if the petitioner fails to file the representation within the stipulated four weeks, the order will have no force. The court did not decide the merits of the petitioner's claim but provided a procedural path for resolution.

Key Issues

1. Whether the respondents should bear the additional tax liability for government contracts executed under the pre-GST regime or post-GST regime without updating the Schedule of Rates (SOR) and Bill of Quantities (BOQ) to incorporate applicable GST? 2. Whether the impact of unforeseen additional tax burden on government contracts since the introduction of GST should be neutralized for ongoing contracts awarded before July 1, 2017? 3. Whether the State SOR should be updated to incorporate applicable GST in lieu of the inapplicable West Bengal VAT for government contracts? Petitioner's Contentions: The petitioner contended that the failure to update the SOR and BOQ to reflect GST led to an unforeseen additional tax burden on government contracts. They sought directions to neutralize this impact and update the SOR. The petitioner intended to rely on judgments from various High Courts. Revenue/State's Contentions: The judgment does not record specific arguments made by the State or other respondents.