M/S Ajeet Singh And Company vs. Municipal Corporation, Korba

Facts

The petitioner, M/s Ajeet Singh And Company, is seeking a refund of Goods and Services Tax (GST) collected from them during the execution of a contract awarded prior to the implementation of GST on July 1, 2017. The petitioner claims that the Government of Chhattisgarh issued a circular allowing for the refund of GST paid on contracts executed before the GST regime, provided contractors produced certificates of GST payment. Despite repeated requests, the respondent, Municipal Corporation, Korba, has allegedly taken no action. The respondent Corporation stated that the claim would be decided after verification of facts and its eligibility under the relevant government circulars.

Held

The Court directed the respondent Authorities to immediately process the petitioner's claim for the refund of GST. This processing must include due verification of facts and the petitioner's entitlement. The decision should consider the State Government's earlier order dated December 21, 2017, and the petitioner's contention that GST has been refunded in similar cases by other government departments. The Court set an outer limit of 90 days from the receipt of the order for an appropriate decision to be taken. The Court did not explicitly leave any issue undecided, but the core of the decision is to ensure the claim is processed expeditiously and fairly based on existing government directives.

Key Issues

1. Whether the petitioner is entitled to a refund of GST paid on a contract executed prior to July 1, 2017, as per the circulars issued by the Government of Chhattisgarh? (Question of law) Petitioner's arguments: The petitioner contends that the contract was awarded before the GST regime, and as per the Chhattisgarh Government's circular, they are entitled to a refund of the GST paid. They rely on the principle that the government itself has refunded GST in similar cases for other departments like PWD and PMGSY. Respondents' arguments: The respondent Municipal Corporation stated that the claim for refund would be processed subject to verification of facts and whether the petitioner's claim falls within the scope of the circulars and orders issued by the State Government regarding refunds for pre-GST contracts.