M/S Bms Projects vs. State Of Chhattisgarh
Facts
The petitioner, M/s BMS Projects, is aggrieved by the inaction of the respondents in refunding Goods and Services Tax (GST) collected from them during the execution of a contract. The petitioner contends that the contract was awarded at pre-GST rates. The Central Government had issued circulars stating that contractors who paid GST on contracts executed before or after the GST regime would be refunded upon producing certificates of GST payment. The petitioner alleges repeated approaches to the respondents have yielded no action regarding the GST refund. The State counsel indicated that the claim would be decided after verification of facts and determination of its eligibility under Central Government circulars.
Held
The Court directed the State Authorities to immediately process the petitioner's claim for the refund of GST. This processing is to be done after due verification of facts and the petitioner's entitlement. The decision should consider the Central Government's order dated 19-11-2018 and all subsequent related orders. The Court also noted the petitioner's contention that GST refunds have been granted in many similar cases. A final decision is to be taken within 90 days from the receipt of the order. The Court did not explicitly leave any issue undecided, as the direction was to process the claim based on existing circulars and verification.
Key Issues
1. Whether the petitioner is entitled to a refund of GST collected on a contract awarded at pre-GST rates, in light of Central Government circulars concerning such refunds? The petitioner argued that the contract was awarded at pre-GST rates and that Central Government circulars mandate the refund of GST paid by contractors in such scenarios, provided they produce proof of payment. They emphasized that despite their repeated requests, the respondents have failed to process the refund, and in similar cases, the government has already refunded GST. The respondents (State counsel) submitted that the claim would be decided subject to verification of facts and consideration of whether the petitioner's claim falls within the purview of the Central Government's circulars and orders. No specific arguments were recorded for the Union of India.
AI-generated summary — verify with the full judgment below
1
2024:CGHC:50375
NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPC No. 6367 of 2024 1 - M/s BMS Projects Having Its Registered Office At College Road Jashpur Nagar District Jashpur (C.G.) And Corporate Office A- 3 Jeevan Vihar Opp. Airport Road Telibandha District - Raipur (C.G.) Through Its Partner Shri Manish Somani S/o Late Shri Nandlal Somani Age About 38 Years R/o Bms House Moti Talab Para Jagdalpur District - Bastar (C.G.)
... Petitioner versus 1 - State Of Chhattisgarh Through Secretary Public Works Department Mantralaya Mahanadi Bhawan Atal Nagar New Raipur District - Raipur (C.G.) 2 - Union Of India Through Its Secretary Ministry Of Road And Transport And Highway Transport Bhawan 1 Parliament Street New Delhi – 110001 3 - Engineer In Chief Public Works Deaprtment Nirman Bhawan North Block Sector 19, Capital Complex Nava Raipur Atal Nagar Distict - Raipur (C.G.) 4 - Chief Engineer Public Works Department National Highway Zone Raipur (C.G.) 5 - Superintending Engineer Public Works Department National Highway Circle Raipur (C.G.) 6 - Executive Engineer Public Works Department National
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