M/S Pjr Project Constructions Private Limited And Anr vs. State Of West Bengal And Ors.

Facts

The petitioners, M/s. PJR Project Constructions Private Limited & Anr., filed a writ petition before the High Court at Calcutta. They sought directions against the State of West Bengal and its authorities. The core issue was the additional tax liability arising from government contracts, awarded either before or after the introduction of GST on July 1, 2017. The petitioners contended that the Schedule of Rates (SOR) and Bill of Quantities (BOQ) for these contracts were not updated to incorporate applicable GST, leading to an unforeseen tax burden. They also prayed for the neutralization of this impact and for the State SOR to be updated to include GST in lieu of the West Bengal VAT.

Held

The High Court disposed of the writ petition by granting the petitioners liberty to file an appropriate representation before the Additional Chief Secretary, Finance Department, Government of West Bengal. This representation should be filed within four weeks from the date of the order. Upon receipt, the Additional Chief Secretary is directed to take a final decision within four months, after consulting relevant departments and providing an opportunity of hearing to the petitioners. The court emphasized that the Additional Chief Secretary must act in accordance with law, pass a reasoned and speaking order on merit, and consider all judgments relied upon by the petitioners. No coercive action shall be taken against the petitioners until the final decision is made. The court did not decide the merits of the petitioners' claims but provided a procedural mechanism for their resolution.

Key Issues

1. Whether the petitioners are entitled to a direction upon the respondents to bear the additional tax liability for the execution of subsisting government contracts awarded in the pre-GST or post-GST regime without updating the Schedule of Rates (SOR) and Bill of Quantities (BOQ) to incorporate applicable GST? 2. Whether the petitioners are entitled to a direction upon the respondents 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? The petitioners argued that the lack of updated SOR and BOQ resulted in an unforeseen additional tax burden on government contracts due to the introduction of GST. They sought relief to neutralize this impact and update the State's SOR. The State's contentions were not explicitly recorded in the judgment, but the court's disposal implies a procedural path for addressing the petitioners' grievances.