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

Facts

The petitioner, Prodyut Kumar Roy, filed a writ petition before the High Court of Calcutta seeking directions against the State of West Bengal and its authorities. The core issue pertains to government contracts, some awarded before and some after the introduction of GST on July 1, 2017. The petitioner's grievance is that the Schedule of Rates (SOR) and Bill of Quantities (BOQ) for these contracts were not updated to incorporate the applicable GST. This has resulted in an unforeseen additional tax liability for the petitioner, impacting ongoing contracts awarded before GST and those awarded post-GST where the rates did not account for the new tax regime. The petitioner sought relief to bear this additional tax liability and to neutralize its impact.

Held

The High Court did not decide the merits of the petitioner's claim regarding the additional tax liability or the neutralization of the GST impact. Instead, the Court disposed of the writ petition by granting the petitioner liberty to file an appropriate representation before the Additional Chief Secretary, Finance Department, Government of West Bengal. This representation should address the issues raised in the writ petition concerning the additional tax liability on government contracts due to the non-incorporation of GST in the SOR and BOQ. The Additional Chief Secretary is directed to take a final decision on this representation within four months of its receipt, after consulting relevant departments and providing the petitioner an opportunity of hearing. The Additional Chief Secretary is to act in accordance with law, pass a reasoned and speaking order, and consider relevant judgments. No coercive action is to be taken against the petitioner until the final decision is made. The Court explicitly left undecided the substantive claims regarding the tax liability and its neutralization, deferring them to the administrative decision-making process.

Key Issues

1. Whether the petitioner is entitled to a direction upon the respondents to bear the additional tax liability arising from government contracts awarded in the pre-GST or post-GST regime where the Schedule of Rates (SOR) and Bill of Quantities (BOQ) were not updated to incorporate applicable GST? (Question of law and fact, concerning contract terms and tax implications). 2. Whether the petitioner is entitled to a direction to neutralize the impact of unforeseen additional tax burden on government contracts since the introduction of GST, for ongoing contracts awarded before July 1, 2017, and to update the State SOR incorporating applicable GST in lieu of West Bengal VAT? (Question of law and fact, concerning tax policy and contractual adjustments). Petitioner's Arguments: The petitioner argued that the failure to update the SOR and BOQ to reflect GST has imposed an unforeseen and additional tax burden on him for executing government contracts. He sought relief to have this additional liability borne by the authorities or neutralized. Revenue/State's Arguments: The judgment records no specific arguments from the State or its authorities regarding their contentions. The matter was heard, and the court proceeded to dispose of the petition based on the submissions made.