M/S Virtue Technology Solution And Another vs. Union Of INDIA And Ors.
Facts
The writ petitioners, M/s. Virtue Technology Solution & Anr., are aggrieved by the Railways' refusal to pay Goods and Services Tax (GST) as claimed by the petitioners. The petitioners had entered into a contract for hiring a material pick-up van for transportation of materials for POH at Kanchrapara Workshop. The Railways contend that the contract price is inclusive of all taxes, including GST. The dispute centers on the interpretation of the contractual terms regarding tax payment.
Held
The Court held that it is not inclined to intervene under Article 226 of the Constitution of India. The primary dispute concerns the interpretation of contractual terms. The Court noted that the tender terms themselves provide a remedy through an Arbitration Clause at Clause 14.0. Therefore, the Court reserved liberty for the petitioners to pursue the available contractual remedy. The writ petition was disposed of without any order.
Key Issues
1. Whether the Railways are obligated to pay GST separately as claimed by the petitioners, or if the contract price is inclusive of all taxes, including GST, as contended by the Railways? This issue turns on the interpretation of Clause 14.0 (Arbitration Clause) of the tender terms and the specific contractual agreement between the parties. Petitioner's Contention: The petitioners argue that the Railways are not paying GST as claimed, implying a dispute over the contractual obligation to pay the tax separately. Revenue/State's Contention: The Railways submit that in terms of the agreement, the price payable to the petitioners is inclusive of all taxes and GST.
Sections Cited
Article 226
AI-generated summary — verify with the full judgment below
2022. Court No.13 Item No. 15 ap W.P.A. No. 279 of 2022 (Through Video Conference) M/s. Virtue Technology Solution & Anr. Versus Union of India & Ors. Mr. Prabir Kumar Chaudhuri, Mr. Phatick Chandra Das. …For the petitioners. Mr. Sanajit Kumar Ghosh, Mr. Raja Ghosh, Mr. Madhusudan Mukhopadhyay. …For the Railways. Affidavit-of-service filed in Court today be taken on record. The writ petitioners are aggrieved by the fact that the Railways are not paying GST as claimed in pursuance of the terms of contract being executed by the petitioners for hiring of one no., 5 Ton Capacity material pick up van for transportation of material for POH on contractual basis at Kanchrapara Workshop. Counsel for the Railways submits that in terms of the agreement between the parties, the price payable to the petitioners is inclusive of all taxes and GST. This Court notes that the dispute primarily concerns interpretation of contractual terms. In view of the remedy available under the tender terms itself, being the Arbitration Clause at Clause 14.0, this Court is not inclined to intervene under Article 226 of the Constitution of India.
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Hence liberty with reserved to the petitioners, a
The judgment continues below.
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