Kumaon Pmgsy Contractors Welfare Association Through Its Secretary Mahesh Kumar Joshi vs. State Of Uttarakhand Through Secretary Rural Development Department Secretariat Dehradun
Held
The Court noted that the petitioner claims exemption from GST based on Central Government notifications for the work undertaken. It was also noted that the Uttarakhand Rural Roads Development Agency (URRDA) has filed an application before the State Government regarding this issue, and the matter is under consideration. Given this procedural development, the Court found no further action was required from its end. The Court directed the State Government to take a decision in the matter expeditiously, in light of the relevant provisions of law. The Court did not make any specific findings on the validity of the GST exemption or the legality of the deduction, as the matter was pending before the State Government.
Facts
The petitioner, Kumaon PMGSY Contractors Welfare Association, represents contractors undertaking road construction under the Pradhan Mantri Gram Sadak Yojana Scheme. The petitioner contends that their work is exempt from Goods and Services Tax (GST) as per Central Government notifications. However, the Uttarakhand Rural Roads Development Agency (URRDA), the work agency in Uttarakhand, is deducting 12% of the payment towards GST from the contractors. The URRDA has filed an application before the State Government for consideration of this matter. The petitioner seeks intervention from the High Court to stop the deduction of GST.
Key Issues
1. Whether the contractors undertaking road construction work under the Pradhan Mantri Gram Sadak Yojana Scheme are exempt from Goods and Services Tax (GST) as per Central Government notifications? Petitioner's Argument: The petitioner argues that specific Central Government notifications exempt their type of work from GST. They have provided these notifications to substantiate their claim. The deduction of 12% GST by the URRDA is causing financial loss to the members of the petitioner's association. Revenue/State's Argument: The respondent, State of Uttarakhand, through its short counter affidavit, states that the Uttarakhand Rural Roads Development Agency has moved an application before the State Government, and the matter is currently under consideration. No specific legal arguments or reliance on provisions were explicitly stated by the respondents in the judgment.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Writ Petition (M/S) No. 3893 of 2018
Kumaon PMGSY Contractors Welfare Association
……….Petitioner
Versus
State of Uttarakhand & others
…Respondents
Present:- Mr. R.S. Gairia, Advocate for the petitioner.
Mr. S.S. Chauhan, Advocate for respondent no.
Mr. V.D. Bisen, Standing Counsel for the State/respondent nos.2 to 10. Hon’ble Sudhanshu Dhulia, J. (Oral)
The petitioner before this Court claims to be the Welfare Association of Contractors of Uttarakhand who is undertaking road construction work, including construction of roads in rural areas under the “Pradhan Mantri Gram Sadak Yojana Scheme.”
The case of the petitioner is that under the notification issued by the Central Government, for the kind of work which is being taken by them, they are exempted from Goods and Services Tax (in short “GST”). However, the work agency which has been assigned the work in Uttarakhand which is “Uttarakhand Rural Roads Development Agency”, is still deducting 12 per cent amount ou
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