Benay Bhusan Palit Memorial Education Society vs. State Of West Bengal And Ors.

Facts

The petitioner, Benay Bhusan Palit Memorial Education Society, filed a writ petition challenging an order dated September 1, 2022, by the appellate authority, which rejected their appeal on the grounds of being filed 48 days late. The petitioner sought directions to the respondents to bear the additional tax liability arising from government contracts awarded before or after the GST regime, where the Schedule of Rates (SOR) and Bill of Quantities (BOQ) were not updated to include applicable GST. They also sought neutralization of the unforeseen tax burden on ongoing contracts awarded before July 1, 2017, and updating the State SOR to include GST instead of West Bengal VAT. The petitioner also challenged the appellate authority's order rejecting their appeal on the technical ground of delay.

Held

The Court directed the petitioner to file appropriate representations before the Additional Chief Secretary, Finance Department, Government of West Bengal, within four weeks. The Additional Chief Secretary is to take a final decision within four months of receiving the representation, after consulting relevant departments and providing the petitioner an opportunity of hearing. The decision is to be a reasoned and speaking order, considering all relevant judgments. Regarding the appellate authority's order, the Court set aside the impugned order dated September 1, 2022, which rejected the appeal on the ground of limitation. The Court found it unsustainable to dismiss the appeal purely on a technical ground of delay without considering its merit. The matter was remanded back to the appellate authority to consider and dispose of the appeal on merit within twelve weeks from the communication of the order, after giving the petitioner an opportunity of hearing. No coercive action shall be taken against the petitioner until the Additional Chief Secretary takes a final decision.

Key Issues

1. Whether the Additional Chief Secretary, Finance Department, Government of West Bengal, should be directed to consider the petitioner's representations regarding the additional tax liability on government contracts due to GST implementation and the updating of the State SOR. The petitioner argued for a direction to the authorities to bear the additional tax liability and neutralize the impact of GST on ongoing contracts, and to update the State SOR. The State did not record specific arguments on this point. 2. Whether the appellate authority's order dated September 1, 2022, rejecting the petitioner's appeal on the ground of limitation (48 days delay) without considering the merits, is sustainable. The petitioner contended that the appeal should have been considered on its merits, and the rejection purely on a technical ground of delay was unjust. The State did not record specific arguments on this point.